New Orleans Heavily Circulated gold $20’s, $10’s and $5’s melted at the Philadelphia Mint

CaptainBlunt

Millions of dollars in old circulated or worn out gold coin was melted by the Philadelphia Mint in 1873 and 1874. The Director of the Mint wrote in 1874: In explanation of what might otherwise be considered an unusually large number of pieces found to be below the prescribed limit of abrasion, it should be stated that there has not been a recoinage of gold in this country since that which followed the change of standard in 1834, and that in the very large exports of coin since the suspension of specie payments in 1861, the unworn coin were selected for that purpose and the light or worn pieces excluded…

In 1873, the Treasury Department had sent out a flyer entitled Standard Weight, Legal Limit Of Abrasion, And Least Current Weight Of United States Gold Coin

Section 14 of the Coinage Act of 1873 provides that gold coins which have become reduced in weight
by natural abrasion not more than one half of one per centrum below the standard weight, after a period of circulation of twenty years, and a proportionate rate for a less period, shall be received at their nominal value at the United States Treasury and its offices.

The Director of the Mint report stated in part…after a circulation of twenty years, as shown by the date of coinage; a ratable portion being allowed for less periods of circulation. It also authorized the recoinage of all pieces in the
Treasury the weight of which should be found below the limit of wear..

A table was provided that showed the standard weight, legal limit of abrasion and least current weight of United States gold coin (Double Eagles, Eagles, Half Eagles, Three Dollar pieces, Quarter Eagles, and One Dollar gold pieces) after a circulation of twenty years…

They also provided a table that showed the weight of different sums of United States Gold Coins in Troy Ounces, and decimals of the ounce. They wrote in part:

Amount Standard Ounces. Less 1/2 per cent abrasion. Least Current Weight
$5,000. 268.750. 1.343 267.407

                  Standard weight.   Less 1/2 per ct. abrasion.     Least Current weight                 
             Ozs. Pwts.   Grains.    Ozs,      Pwts.     Grains.           Ozs. Pwts. Grains 

$5,000 268. 15. 0. 1. 6. 21. 267. 8. 3

Pwts-pennyweights

On January 5, 1874, the Assistant U.S. Treasurer at New Orleans wrote to Philadelphia Mint Superintendent Pollock
He stated: In compliance with instructions from the Honorable Secretary of the Treasury I have this day forwarded to you by Express Six Kegs containing Three hundred Thousand Dollars, light Gold coin for recoinage.

There are ten bags of $5,000 each in each keg. The weight of Gold in each bag shown by my scale is marked on tags attached to the bags. I enclose lists of the weights of the bags in each package, numbered to correspond with the numbers marked on the kegs, and I will thank you, if not too much trouble to have the weights found at the mint worked opposite my weights on the lists and the lists returned to me by mail.

I have about $600,000 more light coin which I will forward tomorrow and the next day.

On January 7th, he wrote: I have this day forwarded to your address per Express Six Kegs contains Three hundred Thousand Dollars light coin…

The list of the weights of each of the 10 $5,000 face bags in Kegs nos. 7 and Keg No.8 were
Keg No. 7
ozs
266.80
266.70
266.63
266.09
266.85
266.85
266.03
266.92
266.62
266.62

Keg No. 8
266.72
266.34
265.68
266.84
266.78
266.65
267.57
267.15
267.21
266.25

List of weight enclosed 9 Kegs

Gross weight weighed on large scale ozs.
Keg
No. 7 2666.35
No. 8 2667.35
No. 9 2667.20
No. 10 2672.25
No. 11 2669.50
No. 12 2665.65
No. 13 2664.55
No. 14 2664.90
No. 15 2668.20

The preceding figures represent 9 kegs (No.s 7-15) of abraded U.S. gold coin (9 X $50,000) totaled $450,000 face value or Kegs No.’s 7-12, $300,000 and Kegs No.’s 13-15, $150,000
In addition $60,000 more would be shipped, see below.

On January 29th, the N.O. Assistant Treasurer once again wrote to the Philadelphia Mint and stated
On the 7th inst.., I shipped to your address by Express (6) Kegs containing Three hundred thousand Dollars in Gold Coin ($300,000)
On the 8th, three (3) Kegs containing One hundred and Fifty thousand ($150,000) Dollars
Gold Coin Yesterday (28th) I forwarded one (1) Keg with Sixty thousand ($60,000) Dollars Gold Coin, total Five hundred and ten thousand Dollars for recoinage

The Keg with $60,000 of gold coin contained the following g by bag Number
1. 20’s 267.42 ounces
2. 20’s 267.75
3. 20’s 267.58
4. 10’s 266.76
5. 10’s 267.80
6. 10’s 267.42
7. 10’s 267.85
8. 5’s 267.50
9. 5’s 266.17
10. Mixed No. 1 267.75
11. Mixed No. 2 266.72
12. Mixed No. 3 266.95

Thus on the 5th he sent 6 Kegs or $300,000 face value in abraded gold coins possibly in Kegs No.1-6
He did state that he was going to send around $600,000 more in light gold coin.
Or
The Assistant Treasurer at N.O. sent abraded gold coins back on January 7-8; 6 Kegs No’s 7-12 totaling $300,000 face
And No’s 13-15 totaling $150,000 face

This was followed by a shipment on Jan. 28th of 1 keg filled with $60,000 in gold coin
Total shipments were either $510,000 face or possibly $810,000 face in gold coin

There is no way to tell how many of these pieces sent back East for recoinage actually bore a New Orleans mintmark.

I know the Treasury at New Orleans must have been raided or taken over by the Confederacy in 1861. Then it could have contained both circulated and recently struck coin, etc. Almost a decade after the end of the Civil War in 1873-early 1874 N.O. banks and other folks could have deposited their heavily circulated gold coin with the Treasurer at New Orleans for shipment to Philadelphia where it was melted and recoined. In addition, any well worn gold coin held by the Treasurer at N.O. post Civil War could have been sent back to Philadelphia for recoinage.

I wonder at what circulated grade levels a gold piece had to fall within to be eligible to be redeemed so to speak at face value with the Mint accepting the cost or loss?

Hopefully Capt Henway will post the Treasury’s 1873 flyer

Source Newman Numismatic Portal

CaptHenway

Per the above.