CIRCULATINGCOINAGE IN 1859 ST. LOUIS Pubblico Deposited
- With permission, republished below is a great article from the September 2014 issue of The E-Gobrecht, an electronic publication of the Liberty Seated Collectors Club, -Editor
St. Louis as seen by a traveling Californian in 1859
by Jim Laughlin, LSCC #876The following is a firsthand account of what was seen in circulation in St. Louis, Missouri during 1859 (population 135,330). It is written by a Californian for an audience back home in California.
May 16, 1859, Sacramento Daily Union
...Currency here is almost entirely paper. State bank notes, which are convertible to specie take the place of gold; there are none under five dollars, and the smaller notes of other banks pretty much supply the place of silver. Under a dollar, of course, the currency is silver. It is seldom a cent piece is seen it be covered in dust in the boxes at the Post office. Except at that institution it is valueless; although is not regarded with quite the contempt it receives in California.Bits have entirely disappeared from circulation, and the dime and half-dime have taken their place. In fractions the decimal system prevails. Nothing is sold for thirty-seven and a half cents—that figure is equivalent to 40 cents. So the seller gains by the change. Foreign “quarters†are also nearly forced out of circulation, although with pillars upon them clearly defined they pass in trade for their nominal value.
Bank notes pass from hand to hand rather more recklessly than you might suppose, considering the number of counterfeits afloat. Extremely careful men always have the “Detector†at their elbows, but the great mass of tradesmen rely on instinct to scent a counterfeit. From superficial observation one would not suppose there is a scarcity of money just now in this region, nor do I hear of distress of any kind….
The panic of 1837 and the subsequent bankruptcy of the States of Mississippi, Louisiana, Florida, Arkansas, Michigan, Indiana, Illinois, Maryland, and Pennsylvania (all by 1841), influenced the delegates framing the California Constitution in 1850. Many eastern residents were financially ruined by holding paper money issued by States, transportation companies, and private banks that had become worthless following the panic. Therefore, the California delegates included a provision in the California Constitution prohibiting the issuance of paper money in California. This explains the interest the reporter has with people using paper money so freely in St. Louis.
The Act of Feb 10, 1857 called in foreign silver to be replaced with the new small sized cents on the East Coast. Here in St. Louis, it appears that the old large cents were scarce and were referred to as being only seen in the “dusty boxes at the Post Office.†(Coin was generally held in wooden trays (boxes) placed near the tellers; at closing, the trays were removed to be secured in a locked safe.) This being apparently a swipe by the author that cents once spent at the Post Office, stayed there. The layer of dust showed that the tellers never touched the cents stored in the boxes. Our reporter reveals that (large) cents are held in contempt back in California.
By 1859, the dime and the half-dime had replaced the Spanish “Real†(“bit†or 12 ½ cents) or the â€Half-Real†(medio or 6 ¼ cents). The author’s reference to foreign “quarters†(i.e. 2 Real pieces) nearly being forced out of circulation, except for those with the “pillars†clearly being “defined,†is interesting. (Silver coins of the Spanish Empire through 1821 were struck with a reverse device of a globe supported on either sides by pillars (i.e. the Pillars of Hercules)).
As strongly “defined†pillars would tend to indicate light circulation wear, these coins were likely closer to full silver weight and therefore continued to pass at 25 cents (2 bits), although it may have been at the 20 cent official U.S. Government rate. It is interesting that despite all the New Orleans mint Liberty Seated quarter dollars produced since 1840, St. Louis still used pre-1822 Spanish Empire coins. Also, Mexican Republic “cap and rays†2 Real coins (post-1823) apparently didn’t make it North to St. Louis.
Merchants in California and the new Territory of Nevada during 1859 were still pricing tolls, drinks, and items for sale using the Spanish “bits†(12 ½ cents), despite the San Francisco Branch Mint producing Liberty Seated dimes starting in 1856. The reference by the reporter that in St. Louis nothing was being sold for 37 ½ cents (3 bits), that merchants were pricing such “37 ½ cent†items at “40 cents†and in effect keeping the change, was (in my opinion) the reporter just “making hay†for the audience back home. I’m not quite sure whether this was because “bits†were still in circulation in California or whether it was just fair game to attack a merchant that appeared too greedy.
This period, however, is about the start of the constant bickering that shows up in the California Press regarding merchants retaining the “bit†pricing, even though “bits†were no longer in circulation in California. The smallest coin in circulation became the dime, and, therefore, anything priced at a “bit†(12 ½ cent) meant someone would take a loss on the transaction, and more often than not, it was not the merchant. Even the striking of half-dimes starting in 1863 at San Francisco never seemed to change the debate.
As many readers know, one of my favorite numismatic books is Fractional Money by Neil Carothers. Within its pages I first learned of the vast array of foreign coins that once circulated throughout the United States, and the now-odd bit-based denominations of 6 1/4, 12 1/2 and 37 1/2 cents.
Over the years I've also come to cherish first-hand accounts of coin circulation. There's no substitute in numismatic research for these primary source materials. Kudos to Jim Laughlin for finding this article, and for so ably interpreting it for today's audience. -EditorFor more information on the Liberty Seated Collectors Club, see:
www.lsccweb.org - 2014-09-07
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