1814 Dime -- Why were so many minted?
CoinValuesResearcher
Posts: 38
Hello all:
I am doing a research project on coinage from the War of 1812, which was actually fought 1812-1815.
The Mint didn't produce any dimes at all from 1812-1819, with the exception of the year 1814, when 421,500 of them were coined, which was by far the most dimes ever produced in a single year, up until that point in time.
Author Richard Doty states the reason dimes were not minted regularly during that era is because the legal tender Spanish real, worth about 12.5 cents, was circulating in sufficient quantities to obviate the need for the dime.
I'm trying to find out if there was a reason why so many dimes were minted in 1814.
If anyone can help me, I'd appreciate it.
I am doing a research project on coinage from the War of 1812, which was actually fought 1812-1815.
The Mint didn't produce any dimes at all from 1812-1819, with the exception of the year 1814, when 421,500 of them were coined, which was by far the most dimes ever produced in a single year, up until that point in time.
Author Richard Doty states the reason dimes were not minted regularly during that era is because the legal tender Spanish real, worth about 12.5 cents, was circulating in sufficient quantities to obviate the need for the dime.
I'm trying to find out if there was a reason why so many dimes were minted in 1814.
If anyone can help me, I'd appreciate it.
Daniel J. Goevert
US Coin Values Advisor
US Coin Values Advisor
0
Comments
Certainly, there weren't any half dimes or quarters minted that year, although it was a big year for half dollars.
You might want to look for the bullion deposit records for 1814 (to see who deposited silver) and the Mint's delivery records (to see if the silver depositor received dimes in return).
Of course, "why" is still going to be the $64,000 question!
edited to add: Don't forget to ask the JRCS members - they may know.
Check out the Southern Gold Society
Surely there are some sharp numismatists frequenting this board who enjoy sharing knowledge. (We know ABC123 ain't one of them, don't we?
US Coin Values Advisor
<< <i>Since in that era, bullion depositors could request the denomination(s) of the coins minted with their bullion deposit >>
Good observation. I have uncovered the fact that in the summer of 1814, a private bank in New Orleans submitted a large quantity of Mexican silver to the mint, and requested quarters in return. These became the 1815 quarters.
A similar story may exist for the 1814 disme, but I haven't found it yet.
Thank you all so far who have tried to lend a helping hand!
US Coin Values Advisor
Just out of curiosity, what's the source for the 1814 deposit by a New Orleans bank?
Check out the Southern Gold Society
When I said "I uncovered the fact...", I hope I didn't create the impression that I myself was the original researcher on the subject
US Coin Values Advisor
Friday, October 07, 2005
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Collecting Capped dimes
By Tom LaMarre (Coins Magazine, December 2005)
It began with a small run of “dismes” in 1792, worth one-tenth of a dollar. The name was from the French “dixieme,” meaning one-tenth. By the time full-scale production of the coins started four years later, the name had been simplified to “dime,” although it would not appear on the coin until the late 1830s. In fact, the first example bearing any indication of value was the Capped Bust dime. Introduced in 1809, it had the inscription “10C.” for 10 cents, on the reverse.
Production of dimes was so limited in the early years that few people even saw one. Those who did come across one of the coins were expected to know its value on the basis of size alone. The early dimes, Draped Bust and Capped Bust, were larger in diameter but thinner than today’s version. Because they were struck without a retaining collar, their diameter varied. Capped Bust dimes were minted until 1837, with some design modifications and a slight reduction in size beginning in 1828.
Capped Bust dimes were .8924 fine. The fineness was not changed to .900 until the Seated Liberty dime’s arrival in 1837. All Capped Bust dimes were struck at the Philadelphia Mint—the series ended several years before the first branch mint was established.
John Reich, assistant engraver at the U.S. Mint, began working on the Capped Bust design just months after Mint Director Robert Patterson hired him in 1807. Born in Germany in 1768, Reich came to the United States as an indentured servant. A Mint officer bought his freedom.
An early numismatic writer claimed Reich used his “fat German mistress” as the model for Liberty on the Capped Bust coins. But the story, which has been retold through the years, has never been verified and no longer seems credible.
On the reverse of the dime, Reich placed an eagle and shield like the design on the larger silver coins. The Capped Bust dime was the last 10-cent piece with an eagle on the reverse. By law, larger silver denominations were required to depict an eagle, but the dime was exempt because of the limited space available for anything but the most basic artwork.
Whether the Capped Bust dime was an improvement over the earlier Draped Bust dime is debatable. Some collectors prefer the Draped Bust version, with a Liberty portrait attributed to a leading artist, Gilbert Stuart, but transferred to steel dies by someone considered only a mediocre engraver, Robert Scot.
But the Capped Bust design has its admirers, too. The John Reich Collectors Society (P.O. Box 135, Harrison, OH 45030-0135) is dedicated to encouraging the study of numismatics, especially U.S. gold and silver coins minted before the introduction of the Seated Liberty design.
Most surviving Capped Bust dimes are heavily worn. Holed examples are also common because dimes were often attached to women’s bracelets. Although many collectors prefer undamaged coins, others are happy to buy a scarce date for a bargain price, usually a fraction of the value of an undamaged example.
Years ago, Capped Bust dimes were usually collected by date. There was even an inexpensive, blue Whitman folder for the series. Today some collectors still assemble date (and variety) sets of Capped Bust dimes, but they are more often collected by type, with one or two examples considered enought to represent the series in a 19th-century type set. Production of Capped Bust dimes began in 1809. Although they were the first dimes struck in two years, fewer than 52,000 were made, and none were struck in 1810.
The Mint director wrote to President James Madison in his report for 1809, “From the Treasurer’s statement herewith transimitted it will appear that during this period there have been issued from the mint…$166,375 of silver coins, in half dollars and dimes.… The supply of bullion is still abundant. Nor is there any apprehension of a deficiency.”
Possibly, some of the first Capped Bust dimes were used to pay admission to Philadelphia’s just-built Olympic Theatre in 1809.
At Bowers and Merena’s The Rarities Sale in July 2002, a Numismatic Guaranty Corp. Mint State-65 1809 dime realized more than $10,000. Near the other end of the grading spectrum, a Good-4 example is valued at $150, according to Coin Prices.
In 1811, leftover 1809-dated dies were repunched to bring them up to date, and the Mint struck 65,000 1811/9 dimes. Coin Prices lists the 1811/09 dime in Very Good-8 at $165.
With the United States at war with England, no dimes were made in 1812 or 1813. In 1814, British forces set fire to the unfinished Capital building in Washington, using books from the Library of Congress to start the blaze. Madison said the enemy had “not even spared those monuments of the arts and models of taste with which our counry has enriched and embellished its infant metropolis.”
In Philadelphia, anthracite coal was introduced in 1814. At the Philadelphia Mint, production of dimes surged to more than 400,000, including large- and small-date varieities, and another with a cramped “STATESOFAMERICA” on the reverse.
In most grades, the small-date 1814 is valued at about twice as much as the large date, with prices starting at $60 for the small date variety in G-4. The United States and Great Britain signed the Treaty of Ghent in December 1814, formally ending the War of 1812. But word spread slowly, and the United States won the Battle of New Orleans in January 1815. News of the signing of the peace treaty reached Philadelphia in February 1815, and a grand ball was held at Vauxhal Garden. In other news, later the same year, the steamboat Baltimore was launched at the Vaughn and Bowers shipyard.
From 1815-1819, there was a lapse in dime production. Mint Director Robert M. Patterson wrote in his report for 1816:
“The stagnation which has for some time existed in the circulation of specie currency has almost totally prevented the deposits of gold and silver bullion for coinage. But there is now a prospect that this will not long continue to be the case, the Mint having at this time in its vaults deposits of these metals to a very considerable amount.
“The repairs of the Mint [after a fire] are now nearly completed. A substantial brick building has been erected on the site formerly occupied by an old wooden building, and in the apparatus and arrangement of machinery which have been adopted, many important improvements have been introduced.
“Among these is the substitution of a steam engine for the horse power heretofore employed, a change which, it is believed, will not only diminish the expenses of the establishment but greatly facilitate all its principal operations.”
John Reich left the Mint in 1817, and William Kneass took his place. Capped Bust dimes had been struck in only three years while Reich was working at the Mint.
In 1820, the Mint turned out nearly 1 million dimes of the same three varieties struck in 1814. The large 0 and small 0 are valued at $55 in Fine-12.
Production topped the million mark in 1821, a record up to that time. Again, there were large- and small-date varieties, but values in most grades are the same for both. Coin Prices listst them at $33 in Very Good-8. The South State Theater in Philadelphia burned to the ground in 1821. The same year, the state legislature authorized the establishment of a penitentiary in the city.
Several proof 1821 dimes were minted. In April 2005, a Professional Coin Grading Service Proof-65 1821 dime from the Louis Eliasberg collection realized $55,200 at a Bowers and Merena auction at the American Numismatic Association National Money Show in Kansas City, Mo.
The Mint reported the production of 100,000 dimes in 1822, but most were probably dated 1821. Today the 1822 it is the most valuable dime in the Capped Bust series, with only a few hundred examples estimated to survive. A G-4 1822 dime is valued at $425.
In addition to the circulation strikes, several proof 1822 dimes were made. This was in an era long before proof coins were sold to the general public. A few years ago, an 1822 dime described as a choice brilliant proof was offered on the Internet for $50,000.
Only one pair of dies was used to strike the original 1822 dimes. But fakes from China have appeared on the market recently, so collectors should be cautious when buying any 1822 dime.
In 1823, dimes were struck from leftover 1822 dies having the last digit repunched with a “3.” More than 400,000 1823/22 dimes were made, with either large or small Es in “United States of America.” In lower grades, there is little or no difference in price, with Fine-12 1823s of both varieties listed at $50.
The Mint reported the production of more than half a million dimes in 1824 and 1825—there was no breakdown by year. The 1824 dimes were struck using repunched 1822 dies. Today the 1824/22 dime is valued at $50 in VG-8. However, the price increases sharply in higher grades.
No dimes were minted in 1826, but more than 1.2 million were struck in 1827, including the rare 1827/5 variety. The normal 1827 dime is valued as a common type coin, valued at $26 in G-4, but it is costly in high grades. At a Kingswood Coin Auctions sale in February 2000, an 1827 Capped Bust dime in MS-66, from the Eliasberg collection, realized nearly $10,000.
The dime was changed during the 1828 production run. Kneass copied Reich’s design, a beaded border was added, the size was reduced, and a closed collar was used during the striking of the coins.
Variety 1 1828 dimes have a large date and a curled base 2. The modified or Variety 2 1828 dime has a small date and a square base 2. In G-4, the Variety 1 1828 dime is valued at $80 and the Variety 2 at $30.
The Mint struck 770,000 dimes in 1829. Collectors classify them by the size of the inscription “10C.” on the reverse—small, medium, large, and very large 10C varieties were created. In F-12, the 1829 with a very large 10C is valued at $85, more than twice as much as the other varieties. There is also a rare 1829 dime with a curl base 2. Discovered by John McCloskey, it is worth thousands of dollars even in low grades.
Production of 1830 dimes included normal date and 1830/29 varieties, and large 10C and small 10C varieties. Coin Prices lists the 1830/29 at $115 in F-12, and the 1830 small 10C and large 10C at $38 in the same grade.
With mintages of more than 500,000 and 700,000 respectively, 1831 and 1832 dimes are considered common, although the mintage figures would be considered low by today’s standards. You should be able to buy either date in VG-8 for $30. The 1833 dime had a similar mintage, but there is a rare variety with the last 3 in the date higher than normal. It was in 1833 that John Reich died in Albany, N.Y., and the Philadelphia Mint moved to a new location at Chestnut and Juniper.
In 1834, large 4 and small 4 varieties of Capped Bust dimes were struck. The total mintage was more than 600,000. Dime production soared to more than 1 million in 1835 and 1836, but dropped below 400,000 in 1837. Robert Scot, engraver of the Draped Bust design that preceded the Capped Bust dime, died in 1837. Capped Bust dimes struck in the final four years of the design have values ranging from $26 in G-4 to $6,500 in MS-65.
The Seated Liberty dime made its debut as a running change in 1837. It represented an attempt to improve the appearance of the nation’s coins, but it owed its existence to the earlier, Capped Bust dime. Reich’s design survived a weak start, remained in production for more than a quarter of a century, and helped establish the dime as a permanent part of the U.S. monetary system.
-The very large production in 1814 increased the number of dimes in circulation by more than 70%. Apparently, the demand for minor silver coinage was increasing, and the war with Great Britain did not limit the availability of bullion. The largest delivery of dimes (305,250) was recorded in the fourth quarter of 1814.
So it would seem that the authors didn't know either, so they speculated it was a supply and demand thing with no dimes produced since the 65,180 of 1811?
<< <i>“The stagnation which has for some time existed in the circulation of specie currency has almost totally prevented the deposits of gold and silver bullion for coinage. >>
I can't answer the original question as to why so many dimes were minted, but the answer to the above is as follows (and may provide a starting point for researching why all the 1814 dimes were struck). In his second term as president, Jefferson imposed an embargo on most foreign trade as a lame gesture toward Britain and France trying to draw the US into the Napoleonic wars. Both countries interfered with the neutral shipping rights of the US, whose unsophisticated diplomacy was rebuffed by both countries, and by Spain, which was little more than a defacto French puppet, having fallen victim to corruption and the incompetence of King Charles. Jefferson's solution was to impose his embargo in the hopes of influencing Britain to let up. With trade suspended, new manufactures sprang up, principally in New England, meaning Massachusetts and Connecticut. They demanded specie in payment of goods, and did a tremendous business supplying the British in Canada. One US general (don't remember who) commented on the virtual highway of goods flowing north, in open defiance of the embargo, while his men were lacking in the necessities.
The result of Jefferson's, and then Madison's, embargo was that the vast majority of specie in the country by 1814 was in New England, leaving almost none in the south. After the end of the Napoleonic wars, of which the War of 1812 was a part, Congress again saw the wisdom of having a national bank. The treasury became flush with the outbreak of peace, shipping and foreign trade resumed, and NE manufactures fell on hard times. To fund the bank, money from tariff revenues and the sale of land by the govt. was used to buy specie in Europe. This is why the following statement was made, the recent stagnation being the embargo.
<< <i>But there is now a prospect that this will not long continue to be the case, the Mint having at this time in its vaults deposits of these metals to a very considerable amount. >>