AMERICAN COIN USE IN PANAMA IN 1849

He points out how the Panamanian people were thrilled with and preferred American coins and currency over Spanish currency. “The natives are very friendly. They would lay down mats in the huts and charge you a dime for lodging and furnish you with hot coffee for a half a dime a cup” he wrote. He further pointed out, “Dimes and half dimes are their favorite coin and they will take it in preference to a Spanish shilling. I can readily believe that there are more dimes in circulation on the Istmuth than there is in the City of New York.”

Although he never specified the particular variety or dates of the coins he carried, it is most likely he had different denominations of the U.S. Seated Liberty coins, such as Seated Liberty half dimes ($0.05), Seated Liberty dimes ($0.10), Seated Liberty quarters ($0.25), Seated Liberty half dollars ($0.50), and Seated Liberty dollars ($1.00). As for the Spanish shilling William mentioned, he most likely was referencing the Spanish real, a type of silver coin very popular in North and Central America, including the United States. Up until the Coinage Act of 1857 went into effect, foreign coins such as the Spanish real (commonly called the Spanish “pillar dollar”) or Mexican issued currency were considered legal tender in the United States.

It is possible the native Panamanian population preferred American coins due to the fineness and weight of the silver content over Spanish coinage. According to William, the Panamanian hosts even preferred American gold Eagles over other gold coins, and traded them for other American coins, saying, “They exchange American gold here at what they call 10 per cent. They will give you 11 dollars for an Eagle at the rate of eight dimes to the dollar and that is the best you can do.”

To read the complete article, see:
RUSHING THROUGH PANAMA: THE STORY OF WILLIAM J. TOPPING (https://jetnumismatics.com/2018/09/10/rushing-through-panama-the-story-of-william-j-topping/)

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