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 #876
The 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 ”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. -Editor
For more information on the Liberty Seated Collectors Club,
see:
www.lsccweb.org
Wayne Homren, Editor
The Numismatic Bibliomania Society is a non-profit organization
promoting numismatic literature. See our web site at coinbooks.org.
To submit items for publication in The E-Sylum, write to the Editor
at this address: whomren@gmail.com
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