Q. David Bowers
Business Strikes:
Enabling legislation: Act of February 12, 1873 Designer: William Barber
Weight: 420 grains
Composition: .900 silver, .100 copper
Melt-down (silver value) in year minted: $0.9814
Dies prepared: Obverse: Unknown; Reverse: Unknown. (On January 3, 1876, six obverse and seven reverse dies were destroyed.)
Business strike mintage: 218,200. Delivery figures by month: January-March: none; April: 200; May: 149,000; June: none; July: none; August: 69,000; September-December: none. This averages out to 36,366 per die-pair, if the dies destroyed were all actually used for 1875 business strikes; or 43,640 if one obverse was a Proof die. In either event, this was far below average.
Approximate population MS-65 or better: 10 to 20 (URS-5). Most are Type I/II.
Approximate population MS-64: 25 to 50 (URS-6). Most are Type I/II.
Approximate population MS-63: 55 to 90 (URS-7). Most are Type I/II.
Approximate population MS-60 to 62: 100 to 175 (URS-8). Most are Type I/II.
Approximate population VF-20 to AU-58: 750-1,500. (URS-II). Most are Type I/II.
Characteristics of striking: Usually seen well struck. Mint State coins are often very lustrous.
Known hoards of Mint State coins: None
Rarity with original Chinese chopmark(s): Type I/I. Very scarce; 1875 Type I/II. Exceedingly rare.
Proofs:
Dies prepared: Obverse: Unknown; Reverse: Unknown
Proof mintage: 700. Delivery figures by month:
January: 300; February: none; March: 200; April-June: none; July: 50; August: 50; September: 100; October-December: none.
Approximate population Proof-65 or better: 34+/-. Most are Type I/II. (URS-7)
Approximate population Proof-64: 108+/-. Most are Type I/II. (URS-8)
Approximate population Proof-63: 167+/-. Most are Type I/II. (URS-9)
Approximate population Proof-till to 62: 185+/- Most are Type 1/11. (URS-9)
Commentary
In business strike form, especially in Mint State, this is the most famous Philadelphia Mint issue. The 1875 has the lowest business strike mintage of any trade dollar from this mint.
Trade Dollars in 1875
The Annual Report of the Director of the Mint, 1875, told the status of the trade dollar at that time: "The trade dollar. In the latter part of the year 1872, it became apparent that the change in the German monetary system, and other causes affecting the demand and supply, would produce a serious decline in the value of silver and injuriously affect our silver mining interests.
"To provide a market for the silver mined in the western portion of our country, a coin of a standard likely to make it acceptable in China was authorized early in the following year, 1873. About two years afterward, January 1875, a law looking to the substitution of silver for the paper fractional currency was enacted. Upon a superficial examination the trade dollar may be supposed to interfere with the plan of substituting silver for the fractional currency; such, however, is not the case, its coinage not having the least effect on the general market-price of silver. The real effect is to make something of a local market at San Francisco, and if our annual production of that metal was not more than the mints could coin, the silver production of the Pacific coast would command slightly better rates; but the fact is, the coining capacity of the mints for silver coins of less denomination than the dollar is not equal to more than half the production, and two years' yield of the mines will, it is probable, furnish sufficient silver to manufacture all the fractional coins that can be advantageously used in the country.
"After the redemption of the fractional notes, silver coins, with the exception of the trade dollar, can only be issued under the coinage laws in exchange at par for gold coins; and as this limitation will be a barrier to their excessive coinage, the demand for bullion for that purpose must, after two or three years, be quite small. The coining rate of silver in trade dollars is $1.14-28/100 per standard ounce. Deducting the charge of 1-1/4% on the nominal value (equal to 1-42/100 cents per ounce) gives a return to the depositor in that coin of nearly 113 cents per ounce. The fact that the average price of silver purchased for the fractional coins has been only 111-4/10 cents per standard ounce, proves that the trade dollar coinage has not influenced the price to any perceptible extent.
"The Comstock bullion, which has San Francisco for its natural market, (The director of the Mint did not consider Carson City, which also had a mint, to be a "natural market." for silver; rather, Carson City was simply a processing depot for the metal. Part of his position was political opposition to the Carson City Mint.) I consists, on the average, of 21 parts by weight of silver to one of gold. The two metals must be separated or parted before either can be brought to the legal standard for coinage. The most economical proportion for the parting operation being two parts by weight of silver to one of gold, the Comstock bullion admits of gold containing a small percentageof silver, being added and refined with but trifling expense compared with that which would be incurred if fine silver had to be purchased and added to such gold to bring it to the proper proportions for refining.
"This class of bullion is, for this reason, a favorite in the London market, where gold containing a small percentage of silver constitutes principally the partible bullion received, and a higher rate is paid for it there than for fine silver.
"Formerly this unparted bullion was nearly all shipped direct from the mines to London, but the coinage of the trade dollar and repeal of the charge for coining gold have caused it, during the present year, to be refined and minted in the United States.
"Ultimately China must have a national coinage of silver, and in the meantime a more extensive use of the silver coins of other countries will be found advantageous not only to the Chinese, but to foreign residents at the different ports. The American trade dollar has been well received in that empire, and if authority were given to coin at our western mints five, ten, twenty, and fifty-cent pieces of the same standard, they would no doubt find a ready market at the different commercial ports, and gradually work their way into the interior of the empire. (As it was, during the 1850s and early l860s large amounts of fractional silver coins, especially issues of the San Francisco Mint, were shipped to the Orient. These were valued on a weight basis and did not actively circulate in Chinese ports. Most such coins were melted. An Uncirculated 1855-S half dollar in a Lester Merkin auction was chopmarked in the middle of the obverse "chung"= middle or half; Chinese humor.)
"If this trade coinage should incidentally afford protection to our mining interests, which have already been injuriously affected by the fall in the value of silver, it could hardly be regarded otherwise than as sound national policy."
Notes: (1) The preceding seems to indicate that such congressional silverites as Rep. Richard ("Silver Dick") Bland had already influenced Linderman. (2) The reference to the German monetary system alludes to the German Empire's adopting the gold standard and dumping tons of silver on the market. The "other causes" include increasing quantities of silver ore from Western mines.