The Rise and Fall of the Trade Dollar

There is no one now alive that can remember spending a Trade dollar as most were out of daily use by the early 1900s. Yet before that time, this coin was one of the most controversial ever struck by the U.S. mints and, in some ways, it set the stage for the famous Morgan dollar. The story begins long before the actual start of mintage in July 1873.

The Mexican War brought vast new territories to the United States and included in the spoils was a wasteland now called Nevada. At first it was considered little more than an impediment on the way to California, but gradually it began to be realized that this region also held large amounts of gold and silver ore.

In 1859, the famous Comstock Lode was discovered, and after that silver was torn from the earth as if there were no end in sight. Although at first there seemed to be little use for this large amount of silver, the mints then cutting back on silver coinage, by 1861 and the opening of the American Civil War it was an entirely different matter.

The Lincoln administration was desperate for precious metals, and much of the newly-mined silver was sent to Europe to help pay for war materiels. Unfortunately, the European market was limited and there was only so much