Most collectors are aware that minor silver coins of the 1870s are relatively common while those of the 1880s, except for the dime, are quite scarce and difficult to find. Many explanations have been offered for this curious state of affairs, but the true beginning goes back to the early days of the Civil War.
With the outbreak of hostilities in April 1861, a nervous population began to hoard the gold coinage, though slowly at first. By December, seemingly endless Union defeats on the battlefields made the citizens increasingly anxious about the future and gold was now hoarded at an increased rate. By the end of the year, paper could no longer be converted into gold at the banks. The long slide into financial anarchy had begun.
Silver was the next to go and by the end of June 1862, it too had vanished. Some of the gold went to Europe, but most of it was simply hoarded by the people. On the other hand, silver was also hoarded, but much of it went abroad, especially to Central America and Canada, where it was used in everyday commercial affairs. Beginning in July 1862 the rule of paper money in the American marketplaces was supreme and little coin was seen in ordinary use. Even the lowly cent was hoarded, causing the 1864 change to
