Seated Liberty dollar
Encyclopedia
The Seated Liberty dollar was the last silver dollar struck before passage of the Coinage Act of 1873, which officially ended production of that denomination. The coin, struck from 1840 to 1873, succeeded the Gobrecht dollar
, which was minted on a trial basis in order to determine whether or not the public would approve of the silver dollar, which hadn't been struck since 1804.
The design was based on the Gobrecht dollar, but the soaring eagle used on the reverse of that coin was replaced with a heraldic eagle. All Seated Liberty dollars were struck at the Philadelphia Mint until 1846, when production began at the New Orleans Mint
. In the late 1840s, the price of silver increased rapidly due to an influx of gold caused by the California gold rush
; this led to widespread hoarding and melting of American silver coins. The Coinage Act of 1853 lowered the silver content of all coins denominated higher than five cents except for the dollar. Later, production increased, leading to a surplus of the coins.
In 1866, "In God We Trust
" was added to the dollar as well as other denominations following its introduction to United States coinage. Seated Liberty dollar production was officially halted by the Coinage Act of 1873, which authorized the trade dollar
, although silver dollar production resumed in 1878 with the Morgan Dollar
.
officially ordered all silver dollar mintage halted, though production had not occurred since 1804. This was done in part to prevent the coins from entering circulation in foreign nations, causing a strain on the fledgling United States Mint
. In 1831, Mint Director
Samuel Moore
requested that President Andrew Jackson
lift the restriction against dollar coin production; the president obliged in April of that year. Despite the approval to strike the coins, no silver dollars were minted for circulation until 1836.
Robert M. Patterson
solicited artists Titian Peale
and Thomas Sully
to prepare new designs for American coinage. In an August 1, 1835 letter, Patterson proposed that Sully create an obverse design consisting of Liberty seated on a boulder, holding a "liberty pole" in her right hand. He also propositioned Sully to create a reverse design consisting of an "eagle flying, and rising in flight, amidst the constellation irregularly dispersed of twenty-four stars". Patterson requested that the bird appear natural; he criticized the eagle designs then in use on the nation's coinage as being unnatural due largely to the shield often placed on the eagle's breast. Mint Chief Engraver William Kneass
prepared a sketch based on Patterson's conception, but soon suffered a stroke, leaving him partially incapacitated. Later in 1835, Christian Gobrecht
was hired on at the Mint. Sully prepared sketches, which Gobrecht used as a guide in engraving copper plates. The plates were approved by various government officials, and the production of trial strikes was allowed to commence.
The design was not free from controversy; former Mint Director Samuel Moore had deprecated the use of the pileus. Quoting former President Thomas Jefferson
, Moore had written to Secretary of the Treasury Levi Woodbury
, "We are not emancipated slaves."
s were minted in December of that year. The dollars of 1836 were minted with a silver fineness of .892 (89.2%) silver, a specification set forth in the Coinage Act of 1792. The legal silver purity was changed from 89.2% to .900 (90%) by a law passed on January 18, 1837; all further Gobrecht dollars were struck in that fineness. Coinage continued in small amounts until 1839, when official production of the Gobrecht dollar ceased. Production of the Gobrecht dollar remained low because Patterson opted to issue the coins only on a trial basis in order to determine if they would prove viable in American commerce.
based on a design by former Mint engraver John Reich, a design first used on silver and gold coinage in 1807. Also of concern to Mint officials was the relief of the Seated Liberty design, which was viewed as being too high to be fully struck in large quantities. In response, Patterson hired Robert Ball Hughes
, a Philadelphia artist, to modify the design. As part of Hughes' modifications, the head was enlarged, the drapery was thickened and the relief was lowered overall.
A small production run of 12,500 was minted in July 1840 in order to allow bullion depositors to become familiar with the new coins before having their silver struck into dollars. Bullion producers began depositing the silver required to initiate heavier production later that year, and 41,000 pieces were minted in November, followed by a mintage of 7,505 in December. Deposits increased the next year, which saw a mintage of 173,000 pieces. All coins were produced at the Philadelphia Mint
until 1846, when 59,000 of the coins were struck at the Mint at New Orleans
.
, a large amount of gold coins began appearing in American commercial channels. The influx caused the intrinsic value of silver coins to increase, prompting a widespread removal of the coins from circulation. In 1850, gold was discovered in Australia, causing further removal of silver coins, which were exported abroad and melted domestically for their bullion value. In the fiscal year of 1848, $3 million worth of silver was imported, while $4.8 million worth was exported. The silver deficit in American commerce began to fluctuate, which resulted in low mintage numbers for the silver dollar; 1,300 and 1,100 were struck in 1851 and 1852 respectively. In response to the lack of silver coinage in circulation, Congress approved a new coinage denomination, the three-cent piece
, in March 1851. The silver purity of the three-cent piece was .750 (75%) fine, lower than the 90% standard used for all other silver coins then in production.
In February 1853, Congress passed the Coinage Act of 1853. The Act lowered the silver weight of every coin from the half dime
to the half dollar
by 6.9%, though the dollar remained unaffected. It is unknown precisely why Congress chose to exempt the dollar from the silver coinage overhaul, however numismatic
historian R.W. Julian suggests that it was done due to its status as the "flagship" of American coins. The Act also prevented bullion producers from receiving minor coins for their bullion deposits; silver dollars could still be requested, but at a 0.5% premium. Another provision in the Act required that all minor silver coins be paid for in gold, thus regulating the marketplace. Julian also notes that the Act instituted a "de facto gold standard
" in the United States, because the provision requiring silver coinage be paid out in gold effectively demonetized silver. This practice was not adhered to by Mint officials, however. Mint officials began using silver coins to purchase silver bullion, resulting in a Mint surplus and thus large production totals. Newly appointed Mint director James Ross Snowden
continued this practice, believing that the Mint should produce a large amount of silver coins. The large mintages resulted in an excess of silver dollars in circulation, despite the earlier shortage of the coins. The silver coin surplus led to complaints from business owners and bankers, and beginning in 1858, the Mint was forced by the Treasury to adhere to the earlier law requiring all silver purchased by the Mint to be paid in gold.
s, despite the fact that the coins had already been minted at the former in both 1846 and 1850. R.W. Julian states his belief that continued production of the dollar had little to do with Orient
al trade, suggesting instead that the coins were sent to the Western United States
for use there. Conversely, Q. David Bowers
, another numismatic historian, believes that most Seated Liberty dollars produced after 1853 were shipped to China in order to pay for luxury goods, including tea and silk.
In the late 1850s, Snowden began petitioning the Treasury to allow a redesign of the United States coins. Snowden believed that a redesign would increase mintage figures, improving the public image of the Mint. A new cent design
was authorized and modifications were made to the dime
and half dime
, though no other coinage redesign was approved. After the outbreak of the American Civil War
, silver coins became scarce once again. In April 1863, new Mint Director James Pollock
argued that the silver dollar be eliminated, noting in a letter that the coin "no longer enters into our monetary system. The few pieces made for Asiatic and other foreign trade and are not seen in circulation."
In November 1861, Reverend M.R. Watkinson suggested in a letter that some sort of religious motto should be placed on American coinage to reflect the increasing religiosity of United States citizens following the outbreak of the Civil War. In an October 21, 1863 report to Treasury Secretary Salmon P. Chase
, Pollock expressed his own desire to emblazon American coins with a religious motto, stating:
in 1864. The following year, a law was passed allowing the Treasury to place the motto upon any coin at its discretion. The motto was placed on the silver dollar, as well as various other silver, gold and base metal coins, in 1866.
The coin shortage continued after the end of the Civil War, due largely to the large war debt incurred by the federal government. As a result, silver coinage began to trade at a significant premium to the now ubiquitous greenback
currency. As such, the government was reluctant to issue silver coins, in which the intrinsic value exceeded the face value. Despite the value deficit, the Mint continued striking silver coins, which were stored in vaults until such time as they could reenter the marketplace. R.W. Julian estimates that this practice began as early as 1868.
began advocating the legal demonetization of silver due to increased mining efforts and railroad construction in the American West. Linderman expected that the value of silver would be greatly reduced, and individuals would have the cheap silver coined into dollars which would then enter American commercial channels, thus inflating the economy. In 1870, Deputy Treasury official John Jay Knox
drafted a bill with the intent to solve the silver dilemma. The bill was discussed during five different sessions of Congress, read in full by both the House of Representatives
and the Senate
and printed in full on multiple occasions before being signed into law by President Ulysses S. Grant
on February 12, 1873. The Coinage Act of 1873 officially demonetized silver by only allowing the deposit of gold for coinage. The act also ended production of the silver dollar and authorized creation of the trade dollar
.
Gobrecht Dollar
The Gobrecht dollar, minted from 1836 to 1839, was the first silver dollar struck for circulation by the United States Mint since production of that denomination was officially halted in 1806...
, which was minted on a trial basis in order to determine whether or not the public would approve of the silver dollar, which hadn't been struck since 1804.
The design was based on the Gobrecht dollar, but the soaring eagle used on the reverse of that coin was replaced with a heraldic eagle. All Seated Liberty dollars were struck at the Philadelphia Mint until 1846, when production began at the New Orleans Mint
New Orleans Mint
The New Orleans Mint operated in New Orleans, Louisiana, as a branch mint of the United States Mint from 1838 to 1861 and from 1879 to 1909. During its years of operation, it produced over 427 million gold and silver coins of nearly every American denomination, with a total face value of over...
. In the late 1840s, the price of silver increased rapidly due to an influx of gold caused by the California gold rush
California Gold Rush
The California Gold Rush began on January 24, 1848, when gold was found by James W. Marshall at Sutter's Mill in Coloma, California. The first to hear confirmed information of the gold rush were the people in Oregon, the Sandwich Islands , and Latin America, who were the first to start flocking to...
; this led to widespread hoarding and melting of American silver coins. The Coinage Act of 1853 lowered the silver content of all coins denominated higher than five cents except for the dollar. Later, production increased, leading to a surplus of the coins.
In 1866, "In God We Trust
In God We Trust
"In God We Trust" was adopted as the official motto of the United States in 1956. It is also the motto of the U.S. state of Florida. The Legality of this motto has been questioned because of the United States Constitution forbidding the government to make any law respecting the establishment of a...
" was added to the dollar as well as other denominations following its introduction to United States coinage. Seated Liberty dollar production was officially halted by the Coinage Act of 1873, which authorized the trade dollar
Trade Dollar (United States coin)
The trade dollar was a United States dollar coin minted to compete with other large silver coins that were already popular in East Asia. The idea first came about in the 1860s, when the price of silver began to decline due to increased mining efforts in the western United States...
, although silver dollar production resumed in 1878 with the Morgan Dollar
Morgan Dollar
The Morgan dollar was a United States dollar coin minted intermittently from 1878 to 1921. It was the first standard silver dollar minted since production of the previous design, the Seated Liberty dollar, ceased due to the passage of the Fourth Coinage Act, an act which also ended the free coining...
.
Background
In 1806, President James MadisonJames Madison
James Madison, Jr. was an American statesman and political theorist. He was the fourth President of the United States and is hailed as the “Father of the Constitution” for being the primary author of the United States Constitution and at first an opponent of, and then a key author of the United...
officially ordered all silver dollar mintage halted, though production had not occurred since 1804. This was done in part to prevent the coins from entering circulation in foreign nations, causing a strain on the fledgling United States Mint
United States Mint
The United States Mint primarily produces circulating coinage for the United States to conduct its trade and commerce. The Mint was created by Congress with the Coinage Act of 1792, and placed within the Department of State...
. In 1831, Mint Director
Director of the United States Mint
The Director of the United States Mint is the head of the United States Mint. The position is currently vacant following the resignation of Edmund C. Moy in January 2011....
Samuel Moore
Samuel Moore (congressman)
Samuel Moore was a member of the U.S. House of Representatives from Pennsylvania.Samuel Moore was born in Deerfield, New Jersey . He graduated from the University of Pennsylvania at Philadelphia in 1791 then worked as an instructor at the university from 1792 to 1794...
requested that President Andrew Jackson
Andrew Jackson
Andrew Jackson was the seventh President of the United States . Based in frontier Tennessee, Jackson was a politician and army general who defeated the Creek Indians at the Battle of Horseshoe Bend , and the British at the Battle of New Orleans...
lift the restriction against dollar coin production; the president obliged in April of that year. Despite the approval to strike the coins, no silver dollars were minted for circulation until 1836.
Design creation
In the summer of 1835, newly appointed Mint DirectorDirector of the United States Mint
The Director of the United States Mint is the head of the United States Mint. The position is currently vacant following the resignation of Edmund C. Moy in January 2011....
Robert M. Patterson
Robert M. Patterson
Robert Maskell Patterson was a professor of mathematics, chemistry and natural philosophy at the University of Pennsylvania and professor of natural philosophy at the University of Virginia before serving as director of the US Mint from 1835 to 1851...
solicited artists Titian Peale
Titian Peale
Titian Ramsay Peale was a noted American artist, naturalist, entomologist and photographer. He was the sixteenth child and youngest son of noted American naturalist Charles Willson Peale.-Biography:...
and Thomas Sully
Thomas Sully
Thomas Sully was an American painter, mostly of portraits.-Early life:Sully was born in Horncastle, Lincolnshire, England, to the actors Matthew and Sarah Sully. In March 1792 the Sullys and their nine children immigrated to Richmond, Virginia, where Thomas’s uncle managed a theater...
to prepare new designs for American coinage. In an August 1, 1835 letter, Patterson proposed that Sully create an obverse design consisting of Liberty seated on a boulder, holding a "liberty pole" in her right hand. He also propositioned Sully to create a reverse design consisting of an "eagle flying, and rising in flight, amidst the constellation irregularly dispersed of twenty-four stars". Patterson requested that the bird appear natural; he criticized the eagle designs then in use on the nation's coinage as being unnatural due largely to the shield often placed on the eagle's breast. Mint Chief Engraver William Kneass
William Kneass
William Kneass was the second Chief Engraver of the United States Mint from 1824 until his death in 1840. Kneass designed the Classic Head motif which appeared on Quarter Eagle and Half Eagle gold pieces from 1834-1839. He also modified John Reich's Capped Bust design on the dime through...
prepared a sketch based on Patterson's conception, but soon suffered a stroke, leaving him partially incapacitated. Later in 1835, Christian Gobrecht
Christian Gobrecht
Christian Gobrecht was the third Chief Engraver of the United States Mint from 1835 until his death in 1844. He was responsible for designing the famous "Seated Liberty" designs, which were in turn the direct inspiration for the design of the Trade Dollar...
was hired on at the Mint. Sully prepared sketches, which Gobrecht used as a guide in engraving copper plates. The plates were approved by various government officials, and the production of trial strikes was allowed to commence.
The design was not free from controversy; former Mint Director Samuel Moore had deprecated the use of the pileus. Quoting former President Thomas Jefferson
Thomas Jefferson
Thomas Jefferson was the principal author of the United States Declaration of Independence and the Statute of Virginia for Religious Freedom , the third President of the United States and founder of the University of Virginia...
, Moore had written to Secretary of the Treasury Levi Woodbury
Levi Woodbury
Levi Woodbury was an Associate Justice of the Supreme Court of the United States, a U.S. Senator, Governor of New Hampshire and cabinet member in three administrations. He was the first Justice to have attended law school....
, "We are not emancipated slaves."
Circulation strikes
Following a series of trial strikes and modifications throughout 1836, the first of what would come to be known as the Gobrecht dollarGobrecht Dollar
The Gobrecht dollar, minted from 1836 to 1839, was the first silver dollar struck for circulation by the United States Mint since production of that denomination was officially halted in 1806...
s were minted in December of that year. The dollars of 1836 were minted with a silver fineness of .892 (89.2%) silver, a specification set forth in the Coinage Act of 1792. The legal silver purity was changed from 89.2% to .900 (90%) by a law passed on January 18, 1837; all further Gobrecht dollars were struck in that fineness. Coinage continued in small amounts until 1839, when official production of the Gobrecht dollar ceased. Production of the Gobrecht dollar remained low because Patterson opted to issue the coins only on a trial basis in order to determine if they would prove viable in American commerce.
Production
Prior to full scale production, Patterson reviewed the coin designs then in use, including that of the Gobrecht dollar. The director opted to replace Gobrecht's soaring eagle reverse with a left-facing bald eagleBald Eagle
The Bald Eagle is a bird of prey found in North America. It is the national bird and symbol of the United States of America. This sea eagle has two known sub-species and forms a species pair with the White-tailed Eagle...
based on a design by former Mint engraver John Reich, a design first used on silver and gold coinage in 1807. Also of concern to Mint officials was the relief of the Seated Liberty design, which was viewed as being too high to be fully struck in large quantities. In response, Patterson hired Robert Ball Hughes
Robert Ball Hughes
Robert Ball Hughes , often known as Ball Hughes, was a British-American sculptor, born in England and active in the United States....
, a Philadelphia artist, to modify the design. As part of Hughes' modifications, the head was enlarged, the drapery was thickened and the relief was lowered overall.
A small production run of 12,500 was minted in July 1840 in order to allow bullion depositors to become familiar with the new coins before having their silver struck into dollars. Bullion producers began depositing the silver required to initiate heavier production later that year, and 41,000 pieces were minted in November, followed by a mintage of 7,505 in December. Deposits increased the next year, which saw a mintage of 173,000 pieces. All coins were produced at the Philadelphia Mint
Philadelphia Mint
The Philadelphia Mint was created from the need to establish a national identity and the needs of commerce in the United States. This led the Founding Fathers of the United States to make an establishment of a continental national mint a main priority after the ratification of the Constitution of...
until 1846, when 59,000 of the coins were struck at the Mint at New Orleans
New Orleans Mint
The New Orleans Mint operated in New Orleans, Louisiana, as a branch mint of the United States Mint from 1838 to 1861 and from 1879 to 1909. During its years of operation, it produced over 427 million gold and silver coins of nearly every American denomination, with a total face value of over...
.
Silver shortage
Following the discovery of gold in CaliforniaCalifornia Gold Rush
The California Gold Rush began on January 24, 1848, when gold was found by James W. Marshall at Sutter's Mill in Coloma, California. The first to hear confirmed information of the gold rush were the people in Oregon, the Sandwich Islands , and Latin America, who were the first to start flocking to...
, a large amount of gold coins began appearing in American commercial channels. The influx caused the intrinsic value of silver coins to increase, prompting a widespread removal of the coins from circulation. In 1850, gold was discovered in Australia, causing further removal of silver coins, which were exported abroad and melted domestically for their bullion value. In the fiscal year of 1848, $3 million worth of silver was imported, while $4.8 million worth was exported. The silver deficit in American commerce began to fluctuate, which resulted in low mintage numbers for the silver dollar; 1,300 and 1,100 were struck in 1851 and 1852 respectively. In response to the lack of silver coinage in circulation, Congress approved a new coinage denomination, the three-cent piece
Three-cent piece (United States coin)
The United States three cent piece was a unit of currency equaling 3/100th of a United States dollar. The mint produced two different three-cent coins: the three-cent silver and the three-cent nickel. Its purchasing power in 1851 would be equivalent to $ today.-History:The three cent coin has an...
, in March 1851. The silver purity of the three-cent piece was .750 (75%) fine, lower than the 90% standard used for all other silver coins then in production.
In February 1853, Congress passed the Coinage Act of 1853. The Act lowered the silver weight of every coin from the half dime
Half dime
The half dime, or half disme, was a silver coin, valued at five cents, formerly minted in the United States.Some numismatists consider the denomination to be the first coin minted by the United States Mint under the Coinage Act of 1792, with production beginning on or about July 1792...
to the half dollar
Half dollar (United States coin)
Half dollar coins have been produced nearly every year since the inception of the United States Mint in 1794. Sometimes referred to as the fifty-cent piece, the only U.S. coin that has been minted more consistently is the cent.-Circulation:...
by 6.9%, though the dollar remained unaffected. It is unknown precisely why Congress chose to exempt the dollar from the silver coinage overhaul, however numismatic
Numismatics
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
historian R.W. Julian suggests that it was done due to its status as the "flagship" of American coins. The Act also prevented bullion producers from receiving minor coins for their bullion deposits; silver dollars could still be requested, but at a 0.5% premium. Another provision in the Act required that all minor silver coins be paid for in gold, thus regulating the marketplace. Julian also notes that the Act instituted a "de facto gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
" in the United States, because the provision requiring silver coinage be paid out in gold effectively demonetized silver. This practice was not adhered to by Mint officials, however. Mint officials began using silver coins to purchase silver bullion, resulting in a Mint surplus and thus large production totals. Newly appointed Mint director James Ross Snowden
James Ross Snowden
James Ross Snowden was treasurer of the United States Mint from 1847 to 1850, and director of the Mint from 1853 to 1861. A notable numismatist of his day, Snowden contributed to such publications as Bouvier's Law Dictionary as well as publishing several numismatic works of his own.-Published...
continued this practice, believing that the Mint should produce a large amount of silver coins. The large mintages resulted in an excess of silver dollars in circulation, despite the earlier shortage of the coins. The silver coin surplus led to complaints from business owners and bankers, and beginning in 1858, the Mint was forced by the Treasury to adhere to the earlier law requiring all silver purchased by the Mint to be paid in gold.
Branch mint coinage and further production
In late 1858 and 1859, the Treasury authorized production of silver dollars at both the New Orleans and San Francisco MintSan Francisco Mint
The San Francisco Mint is a branch of the United States Mint, and was opened in 1854 to serve the gold mines of the California Gold Rush. It quickly outgrew its first building and moved into a new one in 1874. This building, the Old United States Mint, also known affectionately as The Granite Lady,...
s, despite the fact that the coins had already been minted at the former in both 1846 and 1850. R.W. Julian states his belief that continued production of the dollar had little to do with Orient
Orient
The Orient means "the East." It is a traditional designation for anything that belongs to the Eastern world or the Far East, in relation to Europe. In English it is a metonym that means various parts of Asia.- Derivation :...
al trade, suggesting instead that the coins were sent to the Western United States
Western United States
.The Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
for use there. Conversely, Q. David Bowers
Q. David Bowers
Quentin David Bowers is among the best-known and most noteworthy numismatic authors of the last 50 years. Beginning in 1953, Bowers’s contributions to numismatics have continued uninterrupted and unabated to the present day. He has been involved in the selling of rare coins since 1953 when he was...
, another numismatic historian, believes that most Seated Liberty dollars produced after 1853 were shipped to China in order to pay for luxury goods, including tea and silk.
In the late 1850s, Snowden began petitioning the Treasury to allow a redesign of the United States coins. Snowden believed that a redesign would increase mintage figures, improving the public image of the Mint. A new cent design
Indian Head cent
The Indian Head one-cent coin, also known as an Indian Penny , was produced by the United States Mint from 1859 to 1909 at the Philadelphia Mint and in 1908 and 1909 at the San Francisco Mint...
was authorized and modifications were made to the dime
Dime (United States coin)
The dime is a coin 10 cents, one tenth of a United States dollar, labeled formally as "one dime". The denomination was first authorized by the Coinage Act of 1792. The dime is the smallest in diameter and is the thinnest of all U.S...
and half dime
Half dime
The half dime, or half disme, was a silver coin, valued at five cents, formerly minted in the United States.Some numismatists consider the denomination to be the first coin minted by the United States Mint under the Coinage Act of 1792, with production beginning on or about July 1792...
, though no other coinage redesign was approved. After the outbreak of the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
, silver coins became scarce once again. In April 1863, new Mint Director James Pollock
James Pollock
James Pollock was the 13th Governor of the State of Pennsylvania from 1855 to 1858.- Political career :James Pollock graduated from the College of New Jersey at Princeton before setting up a law practice in his home community, in Milton, Pennsylvania...
argued that the silver dollar be eliminated, noting in a letter that the coin "no longer enters into our monetary system. The few pieces made for Asiatic and other foreign trade and are not seen in circulation."
In November 1861, Reverend M.R. Watkinson suggested in a letter that some sort of religious motto should be placed on American coinage to reflect the increasing religiosity of United States citizens following the outbreak of the Civil War. In an October 21, 1863 report to Treasury Secretary Salmon P. Chase
Salmon P. Chase
Salmon Portland Chase was an American politician and jurist who served as U.S. Senator from Ohio and the 23rd Governor of Ohio; as U.S. Treasury Secretary under President Abraham Lincoln; and as the sixth Chief Justice of the United States Supreme Court.Chase was one of the most prominent members...
, Pollock expressed his own desire to emblazon American coins with a religious motto, stating:
I would respectfully and earnestly ask the attention of the department to the proposition, in my former report, to introduce a motto upon our coins expressive of a national reliance on divine protection, and a distinct and unequivocal national recognition of the divine sovereignty. We claim to be a Christian nation. Why should we not vindicate our character, by honoring the God of nations, in the exercise of our political sovereignty as a nation? Our national coinage should do this. Its legends and devices should declare our trust in God; in him who is the "King of kings and Lord of lords." The motto suggested, "God, our trust," is taken from our national hymn, the "Star Spangled Banner;" the sentiment is familiar to every citizen of our country; it has thrilled the hearts and fallen in song from the lips of millions of American freemen. The time for the introduction of this or a similar motto is propitious and appropriate. 'Tis an hour of national peril and danger, an hour when man's strength is weakness, when our strength and our nation's strength and salvation must be in the God of battles and of nations. Let us reverently acknowledge his sovereignty, and let our coinage declare our trust in God.The Mint began producing patterns bearing various mottoes, including "God Our Trust" and "In God We Trust"; the latter was ultimately selected, and its first use was on the two-cent piece
Two-cent piece (United States coin)
The two-cent coin was produced in the United States from 1864–1873 with decreasing mintages throughout that time. In terms of consumer price indexes, the 1864 coin would be comparable to $ in today's money....
in 1864. The following year, a law was passed allowing the Treasury to place the motto upon any coin at its discretion. The motto was placed on the silver dollar, as well as various other silver, gold and base metal coins, in 1866.
The coin shortage continued after the end of the Civil War, due largely to the large war debt incurred by the federal government. As a result, silver coinage began to trade at a significant premium to the now ubiquitous greenback
Greenback (money)
The term greenback refers to paper currency that was issued by the United States during the American Civil War.There are at least two types of notes that were called greenback:*United States Note*Demand Note...
currency. As such, the government was reluctant to issue silver coins, in which the intrinsic value exceeded the face value. Despite the value deficit, the Mint continued striking silver coins, which were stored in vaults until such time as they could reenter the marketplace. R.W. Julian estimates that this practice began as early as 1868.
Coinage Act of 1873
In 1869, Director of the Mint Henry LindermanHenry Linderman
Henry Richard Linderman was an American financier.-Medical practice:...
began advocating the legal demonetization of silver due to increased mining efforts and railroad construction in the American West. Linderman expected that the value of silver would be greatly reduced, and individuals would have the cheap silver coined into dollars which would then enter American commercial channels, thus inflating the economy. In 1870, Deputy Treasury official John Jay Knox
John Jay Knox
John Jay Knox was an American financier, born in Knoxboro, New York. He graduated from Hamilton College in 1849 and entered the banking business.He was a vigorous supporter of the national banking plan of Treasury Secretary Salmon P. Chase...
drafted a bill with the intent to solve the silver dilemma. The bill was discussed during five different sessions of Congress, read in full by both the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
and the Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
and printed in full on multiple occasions before being signed into law by President Ulysses S. Grant
Ulysses S. Grant
Ulysses S. Grant was the 18th President of the United States as well as military commander during the Civil War and post-war Reconstruction periods. Under Grant's command, the Union Army defeated the Confederate military and ended the Confederate States of America...
on February 12, 1873. The Coinage Act of 1873 officially demonetized silver by only allowing the deposit of gold for coinage. The act also ended production of the silver dollar and authorized creation of the trade dollar
Trade Dollar (United States coin)
The trade dollar was a United States dollar coin minted to compete with other large silver coins that were already popular in East Asia. The idea first came about in the 1860s, when the price of silver began to decline due to increased mining efforts in the western United States...
.