The Journey of U.S. Circulating Coins Through American History

The Story of American Currency: The beginnings of American coins date back to long before the founding of the National Mint in 1792. At that time, both foreign and domestic coins were in circulation, especially during the colonial period and the years after the War of Independence. The U.S. Mint was created by Congress in 1792, but the agency had difficulty making enough coins for many years. Over time production grew and high-quality coins were minted for a blossoming country.

2019 San Antonio Mission Quarter Design

Similar to the colonial Spanish milled dollar design was that of San Antonio printed Mission Quarter in 2019. During the colonial period, there were a variety of coins used — including the British pound, German thaler, and Spanish milled dollar as well as several issues from individual colonies. Since it had the same amount of silver for years, the Spanish milled dollar was very popular. Sometimes these dollars might be separated even more, into half areas eighths along with sixteenths would certainly be sectors people transformed it directly to.

After the War of Independence

Following the War of Independence, a weak nation governed under The Articles of Confederation. Each state was given the right to coin money and establish its value within those regulations. Also in circulation were foreign coins, Remember, this was all happening at a time when the same coin could be worth different amounts depending on which state you were in.

Copper Cent of 1787

In 1787, Congress again talked the issue of a national currency over and finally authorized the creation of a copper cent. One of its designs was the Fusio Cent with a sundial in front and 13 links on the back. However

Coinage Act of 1792

The Coinage Act of 1792 established the National Mint in Philadelphia. Congress chose a decimal currency system in 100 parts and decided on the U.S. dollar based on the Spanish milled dollar and its parts (half, quarter, eighth, sixteenth). It established coins with the following metals and denominations:

• Copper: a half-cent and a cent
  
• Coins: Half Dimes, Dimes, Quarters, Half Dollars and Dollars

• Gold Coins: Quarter Eagle ($2.50), Half Eagle ($5) and General ($10)

In 1792, during the construction of the new Mint, 1,500 silver half-dimes were made in the basement of a nearby building. These coins were probably given to distinguished persons and friends and were not put into circulation. The Mint issued the nation’s first circulating coins on March 1, 1793: 11,178 copper cents.

Reaction to the coin design

The new cent coins had a slightly negative reaction among the public. These coins were larger than modern quarters, which was cumbersome for small-denomination coins. The front of the coin had an image of Liberty, with her hair flying back and her face looking “frightened.” The reverse of the coin had a chain of 15 links, much like the Fusio cent. However, some people felt this was a symbol of slavery, not the unity of the states. The Mint quickly removed the chain and replaced it with a wreath design. A few months later, they produced a new image of Liberty.

Although individual states were no longer allowed to mint coins, the law temporarily allowed some foreign coins to remain in circulation until the Mint could issue enough coins.

Coins in circulation

Unfortunately, the Mint could not get enough coins into circulation. Production numbers of copper cents remained steady, but not in sufficient numbers. One reason for this was the increase in the cost of copper. In 1857, Congress discontinued the unpopular half-cent and made the cent smaller to reduce the need for copper.

Silver and gold coins began to be minted in 1794 and 1795, but initially, these coins did not circulate. The Coinage Act of 1792 set the ratio of silver to gold at 15:1, which was different from the world market. American gold coins were less valuable than silver, so they were exported and melted down. Dollars are also exported to international markets or stored as gold bullion.

Coinage Act of 1857

Finally, with the passage of the Coinage Act of 1857, Congress prohibited foreign coins from becoming legal tender. Production increased with new laws, improvements in coining technology, and the establishment of branch mints across the country, and small denomination coins began to circulate in substantial quantities.

Coin Design Changes

The Coinage Act of 1792 specified that all coins must have the legend “LIBERTY” and the year on the front of the coin. Gold and silver coins must have the American Eagle and “UNITED STATES OF AMERICA” on the reverse.