Q.David Bowers
Apparently the smaller denomination Moffat coins, which had a value of$10, made their appearance around the middle of January. Replying to the letters from the Department of the Treasury which arrived on January 15, Moffat noted that "We have not yet commenced the issue, but shall do so in a few days," as quoted earlier. The issue of Prices Current dated January 14, 1852, states that "Messrs. Moffat & Co., and Wass, Molitor & Co. have again commenced to issue small coins." The Picayune of January 23 noted that the Moffat $10 had appeared in circulation the day before and that Moffat did not intend for the moment to issue any coin denominations less than $10.
In February 1852, the Treasury Department commission to make smaller denominations was finally received. On February 12, 1852, the Daily Alta California carried an advertisement which stated:
Moffat & Co. take great pleasure in announcing to the public that they have received by the mail of yesterday instructions from the Treasury Department authorizing the issue from the United States Assay Office of ingots of the denomination of ten and twenty dollars, and that they are prepared to issue the same this day.
The tens will have a fineness of 884 thousandths, and will weigh 262-7/10 grains. The twenties will be of the same fineness and will weigh 525-4110 grains.
No more coin will be manufactured bearing the stamp of "Moffat & Co.," and that already issued will be redeemed whenever demanded.
Moffat & Co.
Notice. Moffat & Co. will hereafter, independently of their contract with the United States Government, receive gold dust for melting and assaying, and return the same in bullion, at a charge of 1% on its value. The bars will at all times be ready for delivery within 48 hours.
Prices Current on February 16, 1852, described the new $10 piece of the Assay Office: The United States Assayer now has the authority from the Government to issue ingots or coin of the denomination of ten and twenty dollars. The obverse of these pieces is in design what is termed "engine turned," with a band across the centre bearing this inscription: AUGUSTUS HUMBERT UNITED STATES ASSAYER OF GOLD CALIFORNIA 1852.
The reverse has an eagle similar to the fifty-dollar piece; over the scroll indicative of the fineness of the coin in thousandths-"884 Thous." under the eagle "Ten Dols." with the legend "United States of America." This is far preferable to the system of private coinage, although certainly not so desirable as a regular mint issue.
On February 28th the same publication contained a notice concerning $20 pieces: The United States Assay Office commenced this morning issuing the twenty-dollar pieces. In our last we neglected to give the fineness in weight of these, and also the $10 pieces, which is as follows: The fineness of both pieces is 884 thousandths, the weight of the twenty 525.4; of the tens, 262.7 grains.
The San Francisco Herald contained a notice of February 16, 1852, which advised the public that:
The following denominations of coin are now authorized to be issued by the Treasury Department from the Assay Office: Ten Dollars, Twenty Dollars, and Fifty Dollars; also bars of Five Hundred Dollars and One Thousand Dollars ...
From February until the autumn of 1852 very little mention of the Assay Office appeared in the San Francisco periodicals. There were only scattered comments from time to time, including an editorial which stated that the existence of the Assay Office was contrary to the purpose of establishing an official government mint in California, and that the owners of the Assay Office would find their business in jeopardy and would press hard against the establishment of a mint.
On September 4, 1852, the United States Treasury wrote to the collector of customs of San Francisco:
The authority previously given me by the Department to receive the gold coins of the United States Assay Office at San Francisco in payment of dues to the Government is hereby revoked, as Congress in the second section of the Civil and Diplomatic Bill, approved August 31, 1852, has prohibited them from being received in any payments to the United States ...
You are therefore requested and instructed in the future to receive in payment for dues to the United States only the issues of the United States Mint and its branches, and the following foreign coin at their respective values, as noted below, agreeably to existing laws, authorizing and receiving of such foreign coins for public dues: the silver dollar of Mexico, Peru, Chile, and Central America at 100 cents, in accordance with the conditions proscribed in the Act of 25 June, 1834, and the gold coins of Great Britain, France, Spain, Portugal, Brazil, Mexico, and Colombia, agreeably to the conditions of the Act of 28 June, 1834 ...
This in effect meant that certain foreign coins, many of which were of less consistent fineness and value than those of the United States Assay Office, were acceptable for United States customs purposes, but United States Assay Office issues were not! The news reached San Francisco early in October.
On the 9th of that month various business people met at the Merchants' Exchange to take action. T. Butler King, collector of customs at San Francisco, was among those present. King stated to the public that he was just as embarrassed as any others in the audience were concerning the situation. He then went on to say that as collector of customs he would continue to receive the Assay Office issues if the merchants of San Francisco would agree to indemnify him against any personal loss. A point of contention was that the $50 slugs and other Assay Office pieces were 887 thousandths or less in fineness whereas United States government issues from the Philadelphia Mint were 900 fine. Concerning this, King stated: "Whether by design or accident, in the recent Act the term fineness, instead of value, was inserted, thereby rendering it impossible for the Secretary to take them in payment of public dues." Following the meeting, a memorandum outlining the various hardships being suffered by the business community was prepared and forwarded to Hon. Thomas Corwin, secretary of the Treasury, Washington. The notice included:
From inquiries of the Honorable Collector of this Port, we learn that the amount of duties payable monthly to this office averages nearly $200,000. And we have ascertained that the American coin held by seven principal bankers in this city, whose united deposits exceed $1,500,000, does not amount to $100,000, sufficient to discharge the duties accruing and payable within the next fifteen days. The inability of the merchants of San Francisco to comply with the stringent instructions of the Department is therefore apparent. It is not a question of convenience, of additional imports, or of impracticability, but is shown to be an impossibility.
In this emergency, the Collector of the Port having readily consented to the only measure of relief which did not subject him to the penalties of the law, by continuing to receive assay ingots as a deposit merely, securing himself by individual guarantees against loss in their ultimate exchange into American coin, it becomes our duty in earnest but respectful terms to memorialize the Department to approve and confirm his action in relation thereto, and to request that upon the issue by the Assay Office of ingots of standard fineness of American mint coinage, to authorize their receipt in payment of all public dues.