new silver coin called the "trade dollar," ostensibly intended for foreign trade only, actually put into circulation to a large extent at home at a profit to silver owners. The "free coinage" privilege and falling market value of silver made these transactions remunerative.
$50 gold piece. Wass, Molitor & Co., 1855. (900 thousandths.)
Some people who accepted the trade dollars in good faith suffered loss.[1] This was the first entering wedge of the silver speculation which has attained such gigantic proportions.
The first coinage of the country was, in a measure, experimental; there were several different and very complicated finenesses, or proportions of precious metal and alloy, used. Then, in 1837, an admirably simple system of coinage proposed by Dr. Patterson was established. Later on various more or less absurd ideas were advanced and experiments were tried, such as the "goloid" dollars, consisting of silver and gold in proportions of 1
12
to 1 and 24 to 1, invented and patented by Dr. W. W. Hubbell. Specimens of these freak coins were struck at the Philadelphia Mint in 1878.[2] At the time that Congress was engaged in formulating laws for the establishment of the Mint and the regulation of the coinage in
- ↑ Under the act of February 19, 1887, holders of trade dollars were permitted to exchange them for "Bland" dollars if presented at the Treasury, or any subtreasury, within six months from that date. Less than one fourth were thus redeemed (7,689,036), and since the expiration of the period of redemption trade dollars have been purchased as bullion, at the market price of silver, when presented at the mints. Although containing more silver than the Bland dollar, the trade dollar is worth less than half as much, owing to the low price of silver.
- ↑ Two different designs of goloid coins were struck:
1. The "goloid dollar," having the head of Liberty and motto "E Pluribus Unum" on the obverse, while on the reverse the following figures appear: 1 gold, 24 silver, .9 fine, 258 grains.
2. The "goloid metric dollar," having similar design on the obverse, and on the reverse the following figures: 15.3 gold, 236.7 silver, 28 copper, 14 grammes.Proof specimens of these coins are preserved in the cabinet of the Mint in Philadelphia.
