Five for a Dollar

The short and inglorious history of the Twenty Cent piece

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Looking back on it after 140 years, one wonders how such a seemingly "unnecessar" denomination was ever created. Digging a bit deeper though, it seems that political wrangling and favors played a part. Some things never change...

Surprisingly, the idea for a twenty-cent coin dates back to the beginnings of American coinage in 1791. The "double disme" however was deemed to be too close in size and value to a quarter dollar, and was wisely shelved. However in 1874, Nevada senator John Percival Jones introduced a bill to authorize the coinage of twenty cent pieces.

The reasons overtly given were to provide more circulating coins out west, where small change was in short supply. The abolishing of the three cent silver coin and the half dime in 1873 exacerbated the situation. Shopkeepers selling items in the 10¢ to 15¢ range often shortchanged customers paying with a quarter due to the lack of small change in circulation. The twenty-cent piece was intended to rectify that situation. Cynics however viewed Jones’ support for the coin as a favor to the silver miners of Nevada, who had been financially impacted by the cessation of the coinage of half dimes and silver dollars the previous year.

Whatever the motivations, Mint director Henry Linderman supported the proposal and by late 1874, pattern designs were being reviewed. Most featured a design of Miss Liberty seated facing left, somewhat similar to the Trade dollar. But until 1916, Treasury policy was to feature identical designs on all minor silver coinage (half dimes through half dollars) and William Barber executed a slightly modified version of Christian Gobrecht’s 1836-37 Liberty Seated Design. To most though, it appeared virtually identical to the quarter. The eagle on the reverse was taken directly from the Trade Dollar.

At 22mm diameter, the new Twenty Cent coin was only 2.3mm smaller than a quarter, and the public’s confusion was immediate and distinctly negative. Ironically, the size difference from the nickel was only 1.5mm, but owing to a totally different design on the nickel, there was no confusion there. While the twenty-cent piece had a plain edge, that did little to help matters.

The only twenty-cent coin to be minted in quantity was the 1875-S, which saw 1,155,000 pieces struck. The Carson City mint made just over 133,000, while a mere 38,500 were made in Philadelphia. Barely a year after they were put into circulation, a bill to repeal their authorization was introduced. Mintages in 1876 were miniscule, with fewer than 25,000 struck at Philadelphia and Carson City. However nearly the entire Carson City issue of that year was later ordered melted, creating one of the great U.S. rarities of the 19^th century. Fewer than twenty 1876-CC pieces are known today. A few hundred Proofs were made in 1877 and 1878, as the bill repealing their authorization did not become law until May, 1878.

Is there a lesson to be learned here? Despite the best (or worst) intentions of "well meaning" politicians, the public has the final say. It’s a shame the proponents of the SBA and Sacagawea didn’t listen.