Low Mintage Seated Liberty Half

pursuitofliberty · August 29, 2020 2:21PM

Before I show pictures of my new purchase, a little back story of the issue, and hopefully a peek into some history of the time.

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The year 1879 is a watermark low point for production of the United States silver coinage, with the exception of the newly released Morgan Dollar, for which the mintage was record-setting on the high side. All three of the minors (the Dime, the Quarter and the Half Dollar) saw their mintage's plummet, and the Trade Dollar, the only other silver regular issue, was sent to a Proof-only status.

Regular issue production of Half Dollars in 1879 became the lowest of the entire Seated Liberty series (at a total of 4,800 pieces), and the third lowest for the denomination throughout the entire history of US coinage, falling only behind the famed issues of 1796 and 1797.

In understanding this occurrence, I find myself digging into my understanding of US History and Economics to form an opinion for the cause of the change. My research strongly suggests that a shift in US policy in 1878, which then created an issue with production management, was the primary driver.

Also, and seemingly overlooked by some, my theory is that the introduction (and growing acceptance) of Federally-issued Paper Currency played a significant role in initiating the sequence of events that would spawn the policy change. This currency was a troubling aspect to some in the Banking industry, as ideologies struggled with how to provide public assurances and backing for such currency, however it was extremely troubling to many in the Mining industry, as this was their livelihood.

That policy, which became known as the Bland-Allison Act, changed the provision and coinage requirements for the United States for at least the next 42 years. The legislation was the result of an immense lobbying effort from the Silver Mining industry, and its passage was despite a veto by President Rutherford B. Hayes, who was concerned with multiple aspects of the bill. Nevertheless the bill became law, which required the U.S. Treasury to buy a certain amount of silver and put it into circulation as Silver Dollars every year.

Therefore, it is not curious that the production of Silver Dollars rose drastically starting in 1878, so much so that within a couple of years, the Morgan Dollar became the highest production coin in US history to that point. And since the Mint facilities could not adapt to that change overnight, other denominations suffered in the production decline.

Of course, these newly minted silver dollars never made it “into circulation” in great numbers, as we know today, aided somewhat by the benefit of hindsight. It is known that many of the larger denominated silver and gold coins had become more of a banking system requirement and item of transfer for the time, than an actual requirement for daily commerce. It is also known those pieces often found themselves stored in bank vaults, almost forgotten in later days, all around the country.

That the 1879 Half also marked the first year of a 12-year run where no more than 12,000 regular issue Half Dollars were minted in a single year is somewhat telling then. Compare this with mintage's of the years prior, or any other twelve year period (before or since) where US coinage was produced every year for a specific denomination, and the disparity is unparalleled. Compare this to the Dime and to a lesser extent the Quarter, where mintage's increased with demand much quicker and it becomes more remarkable.

The sequence of events that created the Bland-Allison Act, and spawned possibly the most collected coin in History, also dethroned the mighty Half Dollar. Long used as both a high-value circulating coin and a vessel for the requirements of banking, the King had been unseated, and the start of a new era was beginning. In the years that would follow, for silver at least, the Dollar became the King, and the Quarter and the Dime became the real workhorses in day-to-day commerce. The Half Dollar, despite its usefulness, and glimpses of glory with a wonderful design some years later, would never take the throne again.

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Back to my new acquisition.

Mintage and overall rarity do not always go hand in hand, and this issue is an appropriate, if not outstanding example of that phenomenon. With hindsight we know the 1879 Half Dollars generally did not circulate. This issue was saved in high enough numbers that a noticeable amount of uncirculated examples do exist, and for a somewhat reasonable price, all relative to the minuscule mintage.

It is somewhat unusual for such a low mintage issues to have more examples graded uncirculated than circulated, but this issue and its brethren from 1879 to 1890 exemplify that anomaly as well, with quite a few more on the uncirculated side, despite the relative high cost of any example.

I found a high AU example, which tilts golden and turquoise blue-green in the fields and exudes the look of a coin that saw little use but great history, and marks, in some ways, the changing of the guard.