THE FOUNDING OF THE CENTRAL AMERICAN MINT

Roberto Jovel of Santiago, Chile writes:

The Central American Mint

The 125th anniversary of the founding of the El Salvador Mint, whose original title was "The Central American Mint, Ltd.", will be on August 28, 2017. The Mint closed operations in January 1896 due to political difficulties with the government that had earlier deposed – through a military coup – the Administration of former Salvadorian President Carlos Ezeta who had founded the Mint in 1892.

The new government felt that the cost of striking coins was excessive and that it would be more economically advantageous to have foreign mints produce the coins required by the country, after the international price of Silver had declined significantly in comparison to that of Gold.

For more than 70 years, after Independence from Spain, El Salvador had strived to have its own minting facility to strike the circulating media it required to facilitate daily trade in its local markets. A first provisional set of coins had been minted in San Salvador during 1828, when the capital city was under siege by the Central American Federation army. General Francisco Morazán – President of Honduras at the time and a political ally of El Salvador`s Liberal government – came to the rescue of the Salvadorians and together they defeated the invading army. This fact partially explains why Morazán’s portrait is included in many Salvadorian coins of the twentieth Century. In the mid-1860s, Salvadorian President Gerardo Barrios made arrangements to strike coins bearing El Salvador´s coat of arms; his efforts yielded some beautiful patterns which never circulated in the country and which are very much in demand of Salvadorian and foreign numismatists.

It was only in 1891 when a concession was granted to a private entrepreneur – Dr. Enrique Arbizú – to set up a minting facility in San Salvador. Coins were to be struck on the basis of the 1883 Monetary Law, with minor adjustments to conform to the specifications of the Latin Monetary Union.

Nearly 2000 persons and government officials attended the inauguration ceremony of the Central American Mint (called “CAM” for short) on 28 August 1892, after Dr. Arbizú had concluded an agreement with an English firm, which brought the required machinery and expertise to El Salvador. During the inaugural ceremony, the Mint began production of the coins called “Bambas” by our grandparents, which presently fill our numismatic collections.

Medal Commemorating the founding of the Central American Mint, Ltd.

Between 1892 and 1896 the Central American Mint struck several million Pesos worth of Silver coins of different denominations, as well as a limited number of Gold coins. Those dated 1896 are extremely scarce and demand very high prices, especially in the better conditions. After the Mint closed operations, and from 1904 through 1914, Silver coins were minted in European and United States mints using the same matrixes developed by the CAM.

Image showing the public attending the CAM’s inaugural ceremony

The CAM struck coins to finance the local and international markets of El Salvador using locally produced metals as well as re-striking foreign Silver coins – from many countries, especially Peru and Chile – and older Silver cobs of different origin, and indirectly assisted in eliminating counterfeit coins from circulation.

A fully illustrated book on the detailed history of the Central American Mint is under preparation by Mr. Ivan Zelaya in San Salvador, that describes all particulars on the operation and production of the facility, should be available by year-end. Comments or queries on the subject may be sent to contacto@thecentralamericanmint.com

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