One, Two and a Half, Three?

The Unloved $3 Gold piece. 1854-1889

This week, we’ll continue our look at short-lived and unloved series of U.S. coins. And no series epitomizes this better than the Three Dollar Gold Piece.

The original Mint Act of 1792 specified three gold coin denominations; the Quarter Eagle ($2.50), the Half Eagle ($5.00) and the Eagle ($10.00). Due to fluctuations in the world price of gold, most of the early gold coins were exported and melted, and saw very little circulation in the United States. By the late 1840s, changes in the ratio of the silver to gold price and the discovery of gold in California lead to two additional denominations; the diminutive $1 gold piece and the Double Eagle ($20.00).

In March, 1851, the local prepaid letter rate was reduced from 5¢ down to 3¢, and with it came the issuance of a new 3¢ coin struck in a silver alloy to assist in purchasing the new stamps. Two years later in February, 1853, the same act that reduced the weight of our circulating silver coins (arrows at date), included a clause authorizing the minting of a $3 coin to be struck in gold. Ostensibly, this coin was struck to facilitate the purchase of a sheet of 100 stamps, or a roll of one hundred of the three cent silver coins.

Designs were presented by James Longacre, using an "Indian Princess" design which also saw use on the Type Two and Three $1 gold coins. By the beginning of May, 1854 coinage had begun and upon their release May 8, the coins were widely saved as souvenirs and keepsakes. During their first year, coins were struck in Philadelphia and New Orleans as well as a handful at the Dahlonega mint in Georgia. San Francisco struck some pieces in 1855-57 and 1860. All the rest were made in Philadelphia in rather limited quantities.

While mintages remained low throughout most of their 35-year life, $3 gold pieces remain available on the market today. The 1854, 1874 and 1878 are the most encountered dates, and remain very popular with type collectors. Key dates include the 1854-D, the proof-only issues of 1875 and 1876, 1877 and the enigmatic 1870-S. The 1870-S was purportedly made to put in the cornerstone of the new San Francisco Mint. Somehow though, a second one ended up being made, and is presently the only piece known. It resides in the Bass Foundation Collection after having been purchased from the Eliasberg collection for $687,500 in 1982. Its value today is estimated in excess of $5,000,000.

Mintages after 1878 never exceeded 6,000 pieces per year, and in fact averaged only about 2,000 pieces annually. The coin died a quiet death in 1889, a few years after the postal rate was again reduced, this time to only 2¢.