SEATED LIBERTY DOLLARS, 1840-1873

THERE IS CURRENTLY a strong collector market for Seated Liberty silver dollars, but this was not always true. Until the last few decades there was little interest in this series except as type coins. This has now changed as prices keep pace with the increased interest.

Prior to 1840, when coinage of the Seated Liberty dollars began, the last full-scale production of this denomination had been in 1804. At that time striking had been stopped by Mint Director Elias Boudinot because too many of these dollars were going to China, in payment for luxury goods, and never coming back.

Dr. Robert M. Patterson, who became mint director in July 1835, felt that the silver dollar ought to be struck once more by the Philadelphia Mint. His reasoning was rather straightforward and was a matter of simple economics for the Mint and the American banking system.

When dollar coinage had been stopped in 1804, its place had been taken by the half dollar. This lesser denomination was not exported to foreign shores and did circulate widely in the United States though it was also used as bank reserves, to back the increasing amounts of paper money issued by private banks.

Patterson had long-term aims in mind when he suggested resumption of silver dollar coinage in 1835. He felt that it would be just as easy for the banks to use silver dollars as backing for their currency but with the added benefit of less