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MORGAN SILVER DOLLARS 1878-1904 & 1921
THE "KING OF AMERICA'S COINS"
Every minted coin carries a unique story, with some tales more remarkable than others.
The Morgan Silver Dollar stands out as one of the most storied, politically charged, and occasionally enigmatic coins in the history of U.S. coinage.
This coin series, produced from 1878 to 1904 and again in 1921, is among the most sought-after by collectors and investors worldwide.
Its fame is tied to the legendary "Wild West" era of the late 1800s, a time filled with gunslingers, bustling boomtowns, lively saloons, cowboys, and notorious outlaws.
During this period, figures like Jesse James and his gang famously targeted banks, trains, and stagecoaches for these iconic coins.
The widespread circulation of Morgan Silver Dollars in the late 19th and early 20th centuries has resulted in low survival rates for certain coins, particularly those in higher Uncirculated Mint State condition.
At Minuteman Rare Coin, our experience and expertise in collecting and investing in U.S. gold and silver rare coins will help you make informed choices and navigate the fascinating world of Morgan Silver Dollars.
At Minuteman Rare Coin, we excel in guiding clients in assembling the most historically significant, valuable, and rewarding Morgan Silver Dollar collection personally tailored to their interests and budget.
Our expertise is in the legendary Carson City Morgan Silver Dollar series of coins minted between 1878 and 1893.
The Morgan silver dollar is the only non-gold coin produced at five different mints: the Main Mint in Philadelphia, as well as those in New Orleans, Carson City, San Francisco, and Denver.
This remarkable series boasts a captivating history, representing authentic rare pieces of late 19th-century America.
Globally recognized as a genuine and treasured American rarity, the Morgan Silver dollar is an essential component of any valuable collection of United States rare silver coins.
Five significant events contributed to the creation, continuation, and eventual demise of the Morgan Silver Dollar.
Each of these events has played a crucial role in the series' enduring popularity, making rarer coins in higher Uncirculated Mint State conditions highly sought after by collectors and investors around the world.
Now, let’s delve into these events:
1.) The Comstock Lode 1859
2.) The Coinage Act of 1873
3.) The Bland-Allison Act of 1878
4.) The Sherman Silver Purchase Act of 1890
5.) The Pittman Act of 1918
THE FAMOUS COMSTOCK LODE DISCOVERY
In 1859, a decade after the California Gold Rush began, two prospectors dug a ditch for water at Six Mile Canyon, located in the Sierra Nevada foothills near the dusty town of Virginia City, bordering Nevada, and stumbled upon gold.
Unbeknownst to them, they had discovered the largest and most significant silver vein in history, known as the Comstock Lode.
This expansive mine quickly produced $4,700 per ton of pure silver ore daily, equivalent to $150,000 per ton in today's dollars. Eventually, the Comstock Lode would contribute over $700 million in gold and silver—equal to over $10 billion today!
By the 1870s, Virginia City, NV, emerged as the most vital city between Chicago and the Pacific. The immense silver output from the Comstock Lode eventually led to the creation of the renowned Morgan Silver Dollar, albeit amid significant political controversy.
THE COINAGE ACT OF 1873
Ulysses S. Grant enacted the Coinage Act of 1873 amidst significant controversy. This legislation removed the silver dollar from circulation and established the U.S. monetary system based on the gold standard.
Historically, the United States had operated on a bimetallic currency system using both gold and silver.
With the Coinage Act of 1873 eliminating the circulation of domestic silver dollars, mine owners and everyday citizens who possessed silver could no longer convert it into currency.
As a result, many citizens were left with devalued silver coins, leading to the law being dubbed "The Crime of '73." This decision triggered a series of events that had dire consequences for the nation.
Over the next five years, the country faced an economic depression characterized by high inflation, soaring prices, and a diminished money supply.
Around 1876, the push for a new standard silver dollar and the reinstatement of the "free coining" of silver began.
After five years of intense debate, Congress reached a compromise by passing the Bland-Allison Act of 1878.
THE BLAND-ALLISON ACT
The Bland-Allison Act passed in 1878, mandated the U.S. Treasury Department to buy between $2 and $4 million in silver each month from domestic mines.
This legislation aimed to boost the currency supply and offer relief to financially struggling farmers and debtors. It represented a compromise between proponents of a silver-based currency and supporters of the gold standard, requiring the Treasury to accept silver bullion deposits and issue gold certificates in return.
The silver purchased was intended for minting silver dollars, specifically the renowned Morgan Silver Dollar.
Production began at the Philadelphia Mint shortly after the Act was signed, followed by the Carson City and San Francisco Mints, with the New Orleans Mint following in 1879.
The 1880s marked a period of significant economic growth and expansion in the United States, often referred to as the Gilded Age.
However, by 1890, the nation faced severe deflation caused by a limited money supply, leading to an increase in the value of U.S. currency and a decrease in the prices of goods and services. This situation had a profound effect on farmers, businesses, and those in debt, highlighting the urgent need for action.
SHERMAN SILVER PURCHASE ACT OF 1890
The Sherman Silver Purchase Act was a federal law enacted in the United States on July 14, 1890, during Benjamin Harrison's presidency. Its purpose was to boost silver demand and help mitigate the economic depression affecting the nation.
This legislation mandated that the U.S. Treasury buy 4.5 million troy ounces of domestic silver each month using Treasury notes that could be redeemed for gold at market rates.
This new requirement added to the existing obligation under the Bland-Allison Act of 1878, which required the Treasury to purchase between $2 and $4 million in domestic silver monthly.
By 1892, records indicated that 357 million Morgan dollars were stored in U.S. Treasury vaults, with an additional 7.5 million held in banks as reserves and around 50 million in circulation. This led to the argument that there was no need for more Morgan Silver Dollars.
The continued production of the Morgan dollar faced significant challenges. The U.S. Treasury financed its monthly silver purchases with federally issued silver notes, which silver mine operators could exchange for gold.
This practice resulted in silver being artificially overvalued and gold undervalued, causing gold coins to disappear from circulation.
Ultimately, this situation contributed to the Panic of 1893, an unprecedented economic crisis for the United States.
The economy plunged into a depression that lasted five arduous years, impacting all financial sectors. It became a national emergency.
The Philadelphia and Reading railroads went bankrupt, manufacturing firms collapsed, many farmers lost their land, and the stock market experienced panic.
Citizens flocked to banks to withdraw their funds, leading to severe bank runs. Over 15,000 businesses failed, 500 banks shut down, and homelessness and unemployment soared.
In 1893, Congress repealed the Sherman Act, which eliminated the U.S. Treasury's obligation to support domestic silver mining. As a result, the historic Carson City Mint was closed.
The situation deteriorated to the point where banks advised citizens against using silver dollars, leading the U.S. Mint to temporarily stop producing silver coins.
From 1893 to 1895, the Morgan silver dollar series experienced its lowest mintage, making these coins some of the rarest and most difficult to find today.
One stipulation of the repeal was that the minting of Morgan silver dollars would cease once the silver reserves acquired under the Sherman Act were depleted.
When the silver supply was exhausted in 1904, U.S. Mints stopped producing the iconic Morgan Dollar, concluding its 26-year run, although it would make a brief return in 1921.
Regular business strikes were produced at the Philadelphia, Denver, and San Francisco Mints, while proofs were exclusively minted at the Main Mint in Philadelphia.
The Bland-Allison Act of 1878 and the Sherman Silver Purchase Act of 1890 were undeniably significant in creating and maintaining the circulation of the Morgan Silver Dollar from 1878 to 1904.
However, the enactment of another Act proved to be even more impactful and advantageous for collectors and investors over time.
By 1918, the use of the silver dollar had dwindled significantly and millions of Morgan dollars remained stored in U.S. Treasury vaults, with additional millions held by domestic and foreign banks.
THE PITTMAN ACT OF 1918
The Pittman Act of 1918 resulted in over 270 million Morgan silver dollars being sent to the melting pot, accounting for nearly half (50%) of all Morgan dollars ever minted!
Exact figures on how many of each date and mintmark were melted remain unknown, as the U.S. Treasury did not maintain melting records.
Population reports of authenticated and certified Morgan silver dollars suggest which dates and mintmarks may have been most affected due to their ongoing rarity and the limited number of coins graded in higher Uncirculated Mint State conditions.
To give you an idea of the scale of this melting, if all the Morgan silver dollars melted in 1918 were laid end-to-end, they would create a chain stretching over 2.5 times from New York City to Los Angeles!
Thanks to the Pittman Act, rare dates and mintmarks of Morgan silver dollars exist today, which has provided a significant financial boon to collectors and investors for many decades.
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RARE COIN
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