Trade Dollars (1873-1885)

Following an extensive coinage of patterns in 1872, trade dollars, at first called commercial dollars, were struck in large quantities in 1873. These silver coins, 420 grains in weight and heavier than a standard United States silver dollar, were intended for use in the Orient to compete with Mexican silver dollars. Merchants in China preferred Mexican coins, which contained more silver than American dollars, and American commerce suffered. The trade dollar would remedy the situation, it was hoped, and the effort ultimately succeeded.

Most business strike trade dollars were produced in the West at the San Francisco and Carson City mints; for two reasons: proximity to China and nearness to sources of silver for coinage. At first, trade dollars were legal tender in the United States, but Congress repealed this provision in the enabling act, and the coins became worth only bullion or melt-down value. For years afterward coin dealers offered common trade dollars for sale retail for less than $1 each!

The formation of a complete set of business strike trade dollars 1873-1878 is a distinct possibility for just about anyone, for there are no major rarities (although the 1878-CC is quite scarce).

Proofs were minted of all dates from 1873 through 1883. Toward the end of the series, the trade dollars from 1878 onward were Proof-only issues, as no related Philadelphia Mint coins of these dates were struck for circulation. A few Proofs were struck in 1884 and 1885, and today these pieces, of which just 10 and five are known respectively, are great rarities.

During the early period of Proof trade dollar issuance, from 1873 to 1877, the coins were not desired by many collectors. As the pieces were sold as part of silver Proof sets (containing silver issues from the half dime to the standard dollar in 1873; and from 1874 to 1877, from the dime to the half dollar), numismatists were forced to buy them. As soon as the sets were unwrapped, many collectors simply spent the Proof trade dollars, with the result that today Proofs of the early dates, especially Proofs in high levels of preservation, are considerably rarer than the mintage figures indicate. On the other hand, the later Proof-only issues (1878-1883) were recognized at the time as having a special value, and most of these were carefully preserved.

Trade dollars are fascinating to collect, but have been largely overlooked. This oversight can translate into the opportunity to acquire scarce and rare coins for truly reasonable prices.