BRITISH COPPER AND AMERICAN COINAGE

With the ending of the American War of Independence in 1783, there arose a great demand for English goods in the United States. To meet this need, American mercantile houses imported large quantities of merchandise. However, since America did not yet have much of value to export, there was an imbalance of trade between the two countries. The merchants were forced to remit specie in payment for goods, virtually denuding this country of gold and silver coin.

During the 1780s the trade deficit was to continue to the point that it seriously threatened commercial traffic. The United States could not remit specie indefinitely and English merchants were feeling the pinch of too much credit to their American cousins. It was not until after 1789, with the establishment of a strong central government in the United States, that trade relations became stabilized.

Although there was a serious shortage of gold and silver coin, there rarely was a lack of copper coinage. During the 1780s many of the individual states, such as Massachusetts, began to strike large numbers of copper coins in order to fill in where the precious metals were missing. It was also designed to make money for the always hard pressed civil governments.

In addition to the home made money of the various states and sometimes individuals, American merchants began to import considerable quantities of English copper coins, primarily the well known “Bungtowns,” pieces struck in similarity to