Q. David Bowers
Newman-Bressett Update (1987)
The following is from The Fantastic 1804 Dollar: 25th Anniversary Follow-Up, by Eric P. Newman and Kenneth E. Bressett, Coinage of the Americas Conference at the American Numismatic Society, New York, 1987:
"Further comment on the striking of Class II (plain edge) 1804 dollars has come to light in a May 21, 1908 letter written by Charles Steigerwalt, a professional dealer of Lancaster, Pennsylvania, to H.O. Granberg, a numismatist from Oshkosh, Wisconsin. Granberg was seeking information during his pending negotiations with John W. Haseltine for the purchase of the Idler example of the Class III (second reverse and lettered edge) 1804 dollar. Steigerwalt wrote that about 1883, William Jenks, a numismatist of Philadelphia, learned from Haseltine that after George J. Eckfeldt, foreman of the U.S. Mint engraving department, had made restrikes of the 1804 dollar in 1858, Eckfeldt's son Cater 'stole them from his father and tried to dispose of them. Such a fuss was made at the time that several were returned-one had gone to Major Nichols of Springfield, Mass. through Randall-one, however, was taken abroad and the purchaser would not return it even when requested by U.S. officials-Haseltine says it is now in Liverpool. This piece has a plain edge and the one in the Mint cabinet with plain edge is supposed to have been from this striking.'
"This third-hand hearsay is not inconsistent with the data we presented in 1962 (Newman-Bressett, pp. 75-83. See also Ted Schwarz, Coins as a Living History (New York 1976), pp. 146-147). Whether Cater is a nickname of Theodore Eckfeldt (1837-1893) or the name of another son has not yet been ascertained. The comments do indicate the possible existence of an unknown Class II (plain edge) 1804 dollar. The alleged theft is far beyond the act described in the book as that of a 'wayward son.' The restriking by the father had put the matter in motion.
"The letter also stated that 'Mr. Haseltine thinks the edge lettering on the old planchets were lettered first or it was done by some wheel process.' This second alternative probably means lettering after striking.
"Though Haseltine's and Steigerwalt's comments are sometimes unreliable even when they attempted to be candid, this reinforces the conclusion that Class II dollars had their plain edges lettered at a later date than 1858 whether unreleased or returned in the 1858 period.
"William Elliot Woodward, a prominent Boston professional numismatist, was not willing to accept the actions of the son of George J. Eckfeldt as relieving the father and other U.S. Mint officials of blame for the 'sale of restrikes. In 1880, Woodward derisively commented on the restrikes as follows: 'I believe that the purchaser [sic] of an 1804 dollar, or anyone of the many of the rarest of American coins, has no guarantee that the son of some future director or chief coiner of the
Mint will not, at an unexpected moment place a quantity on the market .... As the government is fond of illustrating its reports, as a frontispiece, is suggested a view of a son of a late official of the Mint, as he appeared at the store of the writer, when on a peddling expedition from Philadelphia to Boston, ... (W. Elliot Woodward sale (Haines), Oct, 13"16, 1880, p.39, cited in Newman-Bressett, P: 81, n. 95) No names were mentioned.
"Woodward then wondered if there would be an investigation of the 'stupid humbug and stupendous swindle' that the Mint officials had engaged in. Obviously, no official in" quiry took place."
Silver Dollars Exported
In Fractional Money, p. 75, Neil Carothers gave reasons for the cessation of dollar coinage:
"In the West Indies the United States silver dollar is accepted as the equivalent of the Spanish dollar. There was a small profit in exporting American dollars and exchanging them for Mexican Spanish dollars of slightly larger silver con" tent and recoining the foreign pieces. This was the .first of the 'endless chain' type of phenomena that has at intervals dis" turbed national finances .... Jefferson put a stop -to the practice by directing the Mint to coin no more silver dollars. This order remained in force [for over] 30 years, and the United States dollar, not in general circulation before 1806, was virtually unknown from 1792 to 1836. After the coinage of the dollar ended, many half dollars went to the West Indies, as two half dollars were equal in value to one silver dollar."
Carothers on Monetary Conditions
In Fractional Money, Neil Carothers reviewed the monetary conditions of the era (the quotations given here, lightly edited, emphasize the general time period after 1804):
"Most of these [silver coins minted after 1804] went from the Mint to the Bank of the United States, and the bank dis" tributed them to their own vaults, other banks, and to brokers who exported them:'
In 1830 a Senate committee reported that United States silver coins were largely regarded as bullion and "lost to the community as coins." This committee estimated that of; $25 million in silver Coined since the opening of the Mint only $14 million remained in the country and of this amount $2 million was in the reserves of the Bank of the United States.
Further from Carothers: "The coinage of quarters, dimes, and half dimes, as contrasted with the half dollar, was negligible from 1792 through 1834. In 19 years of this period there was no coinage of quarter dollars, and in 13 years no coinage of dimes, and in 26 years no half dimes. The total number of quarters, dimes, and half dimes coined before 1830 was less than one piece for each person in the country that year. The half dollar coinage was relatively large, increasing steadily from an annual average of about $1 million face value in the early years to an average of about $2 million face value after 1825.
"These figures were significant for they measure of the failure of the national coinage system in the first 40 years. The ratio was favorable to silver, and yet the only considerable coinage was in half dollars that did not circulate. The Mint conditions were primarily responsible. The officials, anxious to increase the coinage and reduce expenses, discouraged depositors who asked for small silver coins. Because there was no bullion for them the depositor had to wait while the Mint coined his bullion, and the coinage of half dollars could be accomplished more quickly and more cheaply [than that of an equivalent face value amount of half dimes through quarters]. Year after year the Mint directors apologized for the scarcity of the small silver coins with the explanation that only by coining half dollars could the Mint take care of the silver bullion presented. The reports indicate that the directors refused to coin small pieces except at times when a falling off in deposits made it convenient.