Q. David Bowers
Collecting Dollars: 1930s and Later
As time went on, more and more numismatists started collecting Morgan dollars. Most were content with a specimen of each date and mintmark, If a collector was a connoisseur, more often than not he would acquire the 1878-1904 Philadelphia Mint coins in Proof finish, and then buy an assortment of grades for the mintmarked issues.
Just as Heaton noted in 1893 that dealers did not have broad stocks of mint marked coins, in the 1930s and 1940s, few dealers stocked non-Proof Morgan dollars in depth then either. As a result, the typical collection formed during that period would have the Carson City and New Orleans coins mostly in worn grades. The San Francisco varieties were more obtainable in Uncirculated grade, and often collections would include these.
The advent of Raymond "National" album pages for silver dollars in the 1930s and, later, blue Whitman folders for the series, did much to spur interest. In the 1950s, the typical Morgan dollar collection was apt to be mounted in Whitman folders.
The Coin Market In 1962
To appreciate silver dollars and the collecting interest in them today, it is useful to review the market as it existed in 1962. At the time there was not a great deal of collector interest in the denomination. Banks had a supply of them for face value, and any additional quantity desired could be ordered on short notice from a local Federal Reserve Bank.
Philadelphia and San Francisco examples of certain issues were readily obtainable in Uncirculated grade. If one went to a bank in 1960, a group of perhaps 20 or 30 different Uncirculated varieties could be assembled, with Philadelphia Mint issues of the 1880s most often seen." An Uncirculated Carson City dollar would have been a rarity, and New Orleans dollars possessing even a slight degree of mint lustre were few and far between.
Some rare coin dealers made a specialty of handling dollars, with Bebee's of Omaha and Norman Shultz of Salt Lake City, to mention just two of several, publishing extensive lists. As dollars were ordered from the Federal Reserve by various banks around the country, there were occasional surprises when the shipments arrived. For example, at one time a bag or two of 1904-S dollars, considered to be scarce, came on the market, and the price fell. But before long this and similar groupings were forgotten.
Several dealers specialized in quantity offerings. Among these were those whose recollections are given earlier in the present book. In the late 19508 and early 1960s, an investor interest began to build in dollars.
1903-O: An Ex-Rarity
The great rarity in the series was the 1903-O, one of the central subjects of the reminiscences of old-timers quoted earlier. I recapitulate the story of this coin and others in the 1962-1964 Treasury releases:
In Uncirculated condition the issue listed at $1,500 in A Guide Book of United States Coins, in an era in which a typical Liberty Seated dime in Uncirculated condition catalogued for about $12, an Uncirculated 1796 quarter could be bought for $2,750, and a Mint State Capped Bust half dollar of the 1820s merited a valuation of $16. The 1903-O Morgan silver dollar was a legendary rarity in Mint State.
Few dealers had seen an example, and fewer still had actually owned one. Years earlier in 1941, whenTexas dealer B. Max Mehl catalogued the William Forrester Dunham Collection of United States coins, Dunham's Uncirculated 1903-O dollar was one of the featured highlights.
In October 1962 the numismatic world was shocked by the news that a few Mint State 1903-O dollars had come to light. Telephone calls were made, dealers had conferences with each other, and it was concluded that some had trickled out of the Federal Reserve holdings, along with examples of 1898-O and 1904-O, issues also considered to be rarities. Within a week or two, the "few" coins of these three New Orleans Mint issues expanded to several million.
Some sharpies, hoping to profit on news not generally known, sold examples at high prices to collectors and uninformed dealers during the early days, and one enterprising individual even boarded a plane for England to sell 1903-O dollars to dealers there, hoping the news had not yet crossed the Atlantic.
A treasure trove beckoned. Not often in life does anyone have the chance to buy coins listed at $1,500 in the Guide Book for face value! Banks, the Federal Reserve outlets, and others holding dollars were besieged with buyers. As the Treasury dug deeper and deeper into the vaults, more and more silver dollars of various early dates were found. Values plummeted.
Although some lucky souls bought 1903-O dollars at face value, on the numismatic market the lowest price I observed was about $15 per coin, although wholesale transactions at $5,000 to $7,000 per bag of 1,000 coins were reported, and Steve Ruddel told of a bag being broken up by a midwestern dealer who flooded the local market at $3 to $4 per coin. Despite occasional lower prices such as these, most single pieces traded in the $20 to $30 range.
The previously very rare 1898-O and 1904-O dollars were readily available singly for twice face value on the market, and bags of 1,000 pieces traded in the $1,200 to $1,400 range. Early Philadelphia, Carson City, New Orleans, and San Francisco issues became plentiful in numerous instances. Still, some remained rare. 1893-S, always considered scarce, remained so and was not included in the Treasury dispersal of 1962-1964.
By March 1964, the Treasury was nearly out of silver dollars. Articles in newspapers in Montana, Nevada, and other states in which everyday use of the coins was common, bemoaned the impending day that such coins might no longer be available. Legislation was introduced to mint more silver dollars. Such articles simply increased the demand for what few million silver dollars remained in Federal Reserve system and Treasury Building vaults. In March 1964, visitors to Washington, D.C. were greeted with the unusual sight of long lines of people with pockets stuffed with cash, some with wheelbarrows, eager to acquire $1,000 mint bags from the payout windows in the Treasury Building. On March 25, 1964, the Treasury called a halt. By that time, only about three million silver dollars remained in the Treasury Building vaults.
An inventory of the undistributed coins showed that Carson City issues, particularly those of the 1880-1885 years, were on hand in tremendous quantities. In fact, the larger part of the original mintage of these pieces was still held by the government! After all but several million silver dollars had been passed out at face value (with certain Federal Reserve System employees making nice profits on the side), the government took stock of the situation and held back the remaining pieces deemed to be of numismatic importance. Included were large quantities of Carson City pieces. These were subsequently sold in a series of seven auctions held by the General Services Administration during the 1972-1980 years.