Silver Dollars & Trade Dollars of the United States - A Complete Encyclopedia

1866 Liberty Seated Dollar

WITH MOTTO

Coinage Context
The motto: This is the first year of regular silver and gold coinage with the motto IN GOD WE TRUST, appearing on nickel five-cent pieces, quarter dollars, half dollars, silver dollars, half eagles, eagles, and double eagles, preceded by the bronze two-cent piece in 1864. The earliest patterns with a religious motto were the 1861-1862 half dollars (silver and copper) and copper $10 with GOD OUR TRUST on a scroll or in the field, followed in 1863 by the Washington two-cent piece with GOD AND OUR COUNTRY and the shield-design two-cent with GOD OUR TRUST (this was most likely made sometime after 1864). The adopted motto, IN GOD WE TRUST, first appeared on the transitional pattern two-cent piece of 18630 (J-316 to Judd-318). The 1863-4-5 quarters, half dollars, and dollars with IN GOD WE TRUST followed in, apparently, 1867-1868. Two-cent pieces with the motto appeared in circulation in 1864 and represented the first general use of the inscription.

Distribution: It is probable that many dollars of this date were exported. It is possible that some domestic holders of dollars kept them stateside, and that they found their way back to the Treasury after 1873 (at which time the melt-down value and bullion value achieved equity).

Numismatic Information
Circulated grades: The 1866 is rare in all business strike forms. None was circulated domestically at the time of issue (nor were any other Liberty Seated dollars of this era). Popular with numismatists as the first year with motto on the reverse.

Mint State grades: The 1866 dollar is rare in Mint State, although it is somewhat more available than many issues of the preceding quarter century. Until engaging in this study I never thought of the 1866 dollar as being all that elusive, but examination of the numbers certainly shows it is!

Proofs: Again, as in 1864, three different obverse dies were prepared for a relatively small coinage of Proof dollars, in the present instance 725. Why this happened is not clear; the Mint could normally obtain far more than 250 Proofs per die. All Proof dollars were distributed with the silver Proof sets.

In his Encyclopedia (p. 440), Walter H. Breen notes that several Uncirculated business strikes of the 1866-1870 period have come to light in original Proof sets in Mint wrappers, but I am skeptical Mint

State coins were originally placed in such sets. (In a letter to the author, February 12, 1992, Walter H. Breen noted the following: "These were brought into New Netherlands Coin Co:, circa 1963. Don Taxay and I saw them at the time." In a subsequent letter, July 14, 1992, the same writer stated this: "If the coins were switched after leaving the Mint, that must have happened early; the coins were gems." Also see note on the same subject under 1864 Proofs.)

On this subject, R.W. Julian commented as follows:" "I have read copies of all existing letters from the Mint to collectors concerning Proof coins, beginning in the late 1850s, and there is not a single one to a collector over the substitution of Uncirculated coins for Proofs. The conclusion from this is inescapable that the coins were switched after they left the Mint."

Over the years there has been a slightly stronger demand for Proofs of this date, as they represent the first year with IN GOD WE TRUST on the reverse.

Varieties

Business strikes:
1.Low Date: Breen-5476. Obverse: Low date, closer to the denticles than to the rock base of Miss Liberty.

Proofs:
1. Proof issue: Breen-5476. Obverse: Base of 1 repunched. Reverse: With doubling in GOD WE TRUST (but not IN), in hub; no spine from top of third leaf. This is the die combination most often seen. Copper impressions were also taken from these dies.

2. Proof issue: Breen-5476. Obverse: Low date slanting up to the right. Reverse doubled as preceding (in hub), but a different die. Spine slants up to left from top of the third leaf.

3. Proof issue: Breen-5476. Obverse: Date centered, 1 not repunched. Reverse from the die of No. 2. This same die, possibly used for the final Proof mintages of 1866, was used to coin 1867 Proof dollars, and in later die states also the 1863-4-5 dollars with motto.