The Morgan Dollar Part I
ALTHOUGH NOT always true, one of the most popular silver coins today is the Morgan dollar of 1878–1921. In the early 1980s these coins in high grades were subject to a fast-paced demand; at the present time the interest is still there but at a more relaxed tempo. As with most coins the Morgan dollar did not spring unannounced into the monetary system but instead had a long history behind it.
The first United States silver dollars were struck in October 1794. These pieces were based on the Spanish 8 reales, a coin which was in widespread use in America, before and after the Revolutionary War. The U.S. version was heavily exported to China, however, and regular coinage was suspended from 1804 until 1840.
During the nineteenth century silver played a crucial role in United States coinage. Prior to 1861, and the outbreak of the Civil War, there were sufficient quantities of this metal for coinage, mostly imported from abroad; beginning in 1859, however, there were major discoveries of silver in the American West.
In June 1862, not long after the war began, the public abruptly hoarded all that silver coins that could be found; a large amount was also exported to Central America and Canada. With the coming of peace in 1865 there was little change in the situation. Surplus silver and gold were still sent to
