The Morgan silver dollar is one of the most famous and sought-after American coins by collectors today. But when it first appeared in 1878, it wasn’t well-received. So how did this once unwanted coin become a favorite among collectors and coin enthusiasts? Let’s explore the fascinating journey of the Morgan silver dollar, from its creation to its lasting popularity in modern times.
Why Was the Morgan Dollar Created?
The “Crime of ‘73”
The story of the Morgan dollar starts with the Coinage Act of 1873, a law that ended the production of silver dollars. This upset many silver miners, as they could no longer make easy profits by having their silver turned into dollars at the U.S. Mint. Critics of the law called it the “Crime of 1873.”
The Bland-Allison Act of 1878
Farmers and small business owners wanted the U.S. to return to using both gold and silver to back its currency. They joined forces with silver miners to push for the return of silver dollars. In 1878, Congress passed the Bland-Allison Act, which required the U.S. Treasury to buy large amounts of silver each month and mint it into silver dollars. This is when the Morgan dollar was born.
The Inception of the Morgan Dollar
The U.S. Mint chose a new design for the silver dollar, and the task went to assistant engraver George T. Morgan. Morgan used a school teacher, Anna Williams, as the model for Lady Liberty on the coin’s front. Though Morgan altered her appearance to make her look older, the coin had a unique and motherly Lady Liberty.
Mixed Reactions to the Morgan Dollar
When the Morgan dollar was first introduced, not everyone liked it. Some people criticized the coin, calling it the “Bland Dollar,” a reference to the Bland-Allison Act. Others thought the eagle on the back of the coin was too scrawny and nicknamed it the “Buzzard Dollar.”
The Sherman Silver Purchase Act and Its Impact
In 1890, the Sherman Silver Purchase Act was passed, which required the U.S. government to buy even more silver each month. This led to a stockpile of silver coins. However, people began to exchange their silver coin notes for gold instead of silver, causing a depletion of the U.S. gold reserves. This contributed to the Panic of 1893, a financial crisis that led to the repeal of the Sherman Silver Act.
The End of the Morgan Dollar (Or So It Seemed)
After the repeal of the Sherman Silver Act, the U.S. Mint continued to produce Morgan dollars using leftover silver until 1904. It seemed like the end for the coin. But World War I brought it back into production when the U.S. melted down millions of Morgan dollars to help Britain. In 1921, Morgan dollars were minted for the final time.
The Rediscovery of the Morgan Dollar
In the mid-20th century, the value of silver rose, and many people began collecting Morgan dollars, expecting their silver content to be worth more than the face value. Old bags of Morgan dollars were opened, revealing rare dates, sparking a nationwide craze for the coin.
The GSA and Redfield Hoards
The U.S. Treasury had about 3 million Morgan dollars left when it stopped exchanging them for face value. These coins were auctioned off by the General Services Administration (GSA), mostly from the Carson City Mint. Around the same time, a private hoard of over 400,000 Morgan dollars was discovered in the estate of millionaire Levere Redfield, further increasing interest in collecting these coins.
Conclusion
The Morgan silver dollar started as an unwanted coin but has since become a beloved part of American history and coin collecting. With its interesting design and story, it continues to attract new collectors. Whether found in old hoards or commemorated in modern releases, the Morgan dollar remains a symbol of the past with lasting value.
FAQ’s
Why are some Morgan dollars so rare?
Many Morgan dollars were melted down during World War I, and others were lost or worn down over time. This makes certain dates and mint marks very rare today.
Who designed the Morgan dollar?
The Morgan dollar was designed by George T. Morgan, an assistant engraver at the U.S. Mint.
Why is the Morgan dollar popular today?
Morgan dollars are popular because of their rich history, beautiful design, and the excitement of finding rare dates and mint marks.