Liberty Coin Service

Collecting Trade Dollars

by Thomas Coulson
The Trade Dollar is perhaps the most controversial coin ever issued by
the United States Mint. It was designed partly as a way to remove some
of the surplus silver regularly coming to the United States market. More-
over, it served a useful purpose as a facilitator of imports from China.
As a commercial relationship expanded between China and Western na-
tions in the mid-Nineteenth Century, Chinese merchants preferred to
trade their products for Mexican 8 Reales. The old Spanish Colonial Por-
trait 8 Reales were among the first Western coins seen in China and the
following Mexican types were preferred there due to familiarity with the
denomination and its standard. In order to import goods from China,
1873 Trade Dollar American merchants needed to buy the preferred Mexican 8 Reales, of-
ten at a premium, if they were even available. To alleviate this problem,
the Mint produced the Trade Dollar at a weight that matched the content of the 8 Reales. These new 1873
Trade Dollars were assayed in China and deemed to be acceptable for use in commerce. Many of these
coins were stamped or chopped by Chinese merchants with a ‘chop mark’ to vouch for the coin’s authentic-
ity. This Chinese acceptance would have been the successful conclusion to the Trade Dollar’s story except
for a quirky provision in the coin’s authorizing act of 1873.

This act – the one often referred to as the ‘crime of ‘73’ – had a clause that gave the Trade Dollar legal tender
status up to a quantity of five dollars in the United States. Initially, this did not present a problem as the
price of silver remained fairly high. (For nearly two decades the ‘standard’ Silver Dollars, which were even
lighter than the Trade Dollars, did not circulate because their intrinsic value exceeded their face value.)
As more silver from the great Comstock Lode discovery made its way to market, the price of silver began
to fall. Meanwhile, in parts of China, the new Trade Dollars were facing some headwinds in gaining ac-
ceptance over the preferred Mexican 8 Reales. Some Trade Dollars were then diverted from China as the
‘legal tender’ clause was invoked domestically. With their quasi-legal tender status, the Trade Dollars soon
became an unwanted nuisance in the United States. In recognition of this problem, their legal tender status
was revoked entirely in 1876.

Without legal tender status in the United States, the Trade Dollar should have disappeared from circu-
lation. Instead, even more Trade Dollars circulated domestically. In the late Nineteenth Century, many
communities in the United States were ‘company towns’. In these towns, nearly every aspect of life such as
work, boarding, commerce, schooling, and entertainment were controlled by the local employer. Because
such companies were so pervasive in the fabric of the community, they wielded immense power. Unscru-
pulous company owners looking to maximize profits found a great opportunity in the Trade Dollar. These
coins, no longer legal tender, could be purchased for slightly over their intrinsic value; often around 80
to 83 cents. The coins could then be paid out to employees as ‘dollars’, effectively lowering labor costs by
25 percent. Because the company dominated the town, the legal tender status of the Trade Dollars was
moot. These companies could force employees to accept whatever they chose to pay out and redeem them
at company stores at their discretion. In fact, the coins further strengthened the company’s position since
outside merchants were likely to refuse the Trade Dollars altogether. Walter Breen stated that over 8.6 mil-
lion Trade Dollars went into circulation in the Eastern U.S. during 1877 and 1878. (Breen, P.466) That was
equivalent to half of the entire Trade Dollar mintage for those years! It is no mystery why the Trade Dollar
quickly came to be unwanted and despised by the American public.
Circulating Trade Dollar production ended abruptly as the Bland-Allison act introduced the Morgan Dol-
lar in 1878. Through 1883 and possibly 1884, the Trade Dollar was officially produced as a proof coin
for collectors. Only ten 1884 Trade Dollars are known to exist and these are one of the greatest and most
prized of all United States numismatic rarities. There is some debate over whether or not the 1884 Trade
Dollars were an official Mint Issue. Unauthorized proof Trade Dollars bearing the date 1885 (5 pieces)
were also struck. The 1884 and 1885 Trade Dollars were generally unknown until the early 20th Century.
Since then, sales of 1884 and 1885 Trade Dollars are special occasions. These mysterious coins are highly
coveted and rarely encountered.

Trade Dollars continued to be unpopular for decades. In 1887, the U.S. Treasury
agreed to redeem remaining undamaged Trade Dollars at $1.00 each and many
were turned in and melted. Many more were undoubtedly melted in the Orient.
Occasionally, Trade Dollars still circulated in the U.S. Based on their silver value.
However, few collectors wanted them. Those that did could often purchase them
for their scrap value, which remained under a dollar until the price of silver rose
in the 1930’s. Even proof Trade Dollars could be had for only a few dollars. As
coin collecting gained popularity, Trade Dollars eventually found new apprecia-
tion. Prices generally rose as more collectors jumped into the market. The coin’s 1883 Proof Trade Dollar
attractive design and scarcity in original condition made it appealing to collect. Coins that circulated in
China denoted by their ‘chops’ were found to be intriguing for their role in the history of World commerce.
The sad abuse of the Trade Dollar in the United States was equally interesting. No other U.S. Coin has quite
the same background.

View Our Inventory of Trade Dollars for Sale Here.

How to Collect Trade Dollars –

Four Different Ways
1877-S Trade Dollar
reverse
1. The Basic Collection
With only 18 different coins, the Trade Dollar series is short. The collection can be completed albeit
not so easily. The coins are not overly expensive, but finding nice specimens will be a challenge. Lots
of coins were destroyed or chop marked. Many more were cleaned or mishandled to the point of dam-
age. Even for common dates, problem-free original coins are surprisingly scarce. The optimal grade
range for circulated Trade Dollars is Extremely Fine to About Uncirculated. These coins have their
design elements intact and lots of eye appeal if original. Most issues, except for some of the Carson City
coins can be bought for under $1,000 each. Many are in the $200.00 to $400.00 range. It would make
sense to start with the most common coins first and fill in the collection with the scarcer coins as they
become available. The 1877-S, followed by the 1876-S, 1878-S and 1875-S are likely to be the starters.
The 1877 and 1876 Philadelphia Mint coins would be the next group. The 1875-CC will be the most
available of the Carson City coins, followed by the 1874-CC. The 1873 and 1874 issues are tricky to
find; as is the 1875 Philadelphia Mint Trade Dollar. The 1878-CC Trade Dollar is the scarcest coin in
the series and it is legitimately tough to find. Some Trade Dollar albums also include spots for proof
coins, too. The Whitman Classic albums for Trade Dollars included dates through 1883.
 Mint State Trade Dollars could make an interesting collection. All mint state Trade Dollars are scarce
or rare. They are available in auctions with regularity, though, and given their scarcity represent de-
cent value. Except for the Carson City issues, most of the Mint State Trade Dollars can be bought for
$2,000 to $4,000 each in MS-62 to MS-63 grades. At this price point, these coins are affordable for
many collectors willing to save up and buy them periodically. The 1873-CC, 1876-CC and 1878-CC are
expensive at over $10,000.00 each. They do come up for sale with frequency for those that can afford
them. MS-65 Trade Dollars would make an incredible collection. Populations in this grade are minis-
cule except for the most common dates. This grade will take substantial time and money to complete.

There are many varieties that can be added to any Trade Dollar collection. Both the obverse and re-
verse designs were modified slightly in 1875 and 1876. Type I and Type II Reverses were issued in 1875
and Type I and Type II Obverses were issued in 1876. There is also a doubled die obverse for the 1876-
CC and 1876-S Trade Dollars.

Click Here for a free Collector’s Checklist to Help You Get Started!

2. Chop Marked Trade Dollars

Trade Dollars that actually went to China are usually found with chop marks. Chop marks are typically
Chinese characters punched into a coin that denote acceptance as a good weight piece by a merchant.
Chop marked coins vary from having a few light chops to extensive chopping that even alters the shape
of the coin. Chop marks are fascinating because they demonstrate part of the host coin’s circulating life
as it travelled from merchant to merchant. Even more compelling is the fact that many of these chop
marked coins have survived the past century and longer and made the return trip back to the United
States. This was not an easy voyage, as silver that goes to China often stays there.

Chop marked Trade Dollars exist for every date and mintmark of circulating
Trade Dollar issues. The 1878-CC Trade Dollar is likely the scarcest chop
marked Trade Dollar. Though chopped Trade Dollars are relatively scarcer
than unchopped specimens they can usually be purchased for less. (This was
not always the case. Long ago, collectors appreciated the historic value of chop
marks and coins with them traded at premiums.) There are several attrac-
tive Mint-State Trade Dollars available at very reasonable prices. (1875-S and
Chop marked Trade 1876-S seem to be most common.) Assembling a complete set of chop marked
Dollar Trade Dollars is more difficult than finding the same coins unchopped. Com-
pleting this set would be a rewarding challenge because of the difficulty in finding the ‘stoppers’. The
added bonus is found in obtaining wonderful historic value in the small silver U.S. Ambassadors to the
East.

Trade Dollars are not the only chop marked coins, though. An interesting ex-
pansion to the series of chop marked Trade Dollars would be a type collection
of chop marked coins. There are many different types of coins displaying chop
marks dating as far back as Ancient Rome. Also, there are a dozen different
types of chop marks as outlined by F.M. Rose in his book Chopmarks. Chop
Marked coins can be collected by coin type or chop mark type or both! (The
types listed in “Trade Coinage Type Set” below would be a good starting point
for such a collection.) Chop marked Trade
Dollar
3. Trade Dollar Art
There are two types of distinctive art crafted from Trade Dollars. The first is the Box or Opium Dollar.
Box dollars are coins that have a hollowed out compartment on the inside. There is usually a hinge that
holds the two sides together. The compartment could hold a picture or note or anything small. Box
coin art has existed at least since the Seventeenth Century, and there are many different types of coins
that have been hollowed out this way. The Trade Dollar is the
most commonly encountered United States coin in box format.
They are often called ‘Opium Dollars’ due to their proximity to
the Opium Trade and the conjecture that these small compart-
ments could have held Opium at one time. Though this is an
intriguing concept, it is unlikely that these Trade Dollars were
Boxed Trade Dollar actually used in this manner.

Boxed Trade Dollars could be collected informally as they come. It would be very interesting to see
how many different dates and mintmarks could be found, too. Box Trade Dollars could also be collect-
ed as part of the larger topical of Box coinage; which would also be a fun and challenging collection.

The Second form of Trade Dollar art is the Potty Dollar. On coins designed with Miss Liberty Seated
such as the Trade Dollar and Liberty Seated coinage, it was noticed by prospective artists that she ap-
peared to be sitting on a commode or chamber pot. These artists sculpted their vision into the coin.
Some of these are very well made and some crude. Nicely executed pieces are interesting to see and
collect. If you appreciate coin art, consider this Nineteenth Century equivalent to the Hobo Nickel.

4. Trade Coinage Type Set

There were several different World coins that travelled to China to serve as a medium of exchange for
desired Chinese goods unavailable in the West. Chinese merchants had a great desire for silver and
demanded silver coinage in exchange for their wares. Though China conducted trade with the West for
centuries, the flow of silver seemed to increase in the late 18th Century. Trade expanded further when
additional ports were opened after 1842.

The Spanish Colonial 8 Reales were the coins most desired by the Chinese to accept for trade. This
was probably due to the fact that these coins were more abundant and consistently minted than other
World crowns of the era. As Colonial Spain fell to rebellions by the early 1820’s the Colonial 8 Reales
was no longer being produced. The Mexican 8 Reale of the same standard became the logical replace-
ment. It was inconvenient for merchants of other countries to procure the old Portrait 8 Reales and the
Mexican Cap and Rays coins. Often they could only be had at premiums, if at all. Several countries
introduced competing coinage for trade with varying success. Completing a type set of these different
trade coins used in China is a fun way to study East-West trade relations of the Nineteenth Century. A
type set of these coins might include the following: (Note: the collection might contain one of each ex-
ample with chop marks to demonstrate coins that actually travelled to China and one example without
chop marks as a clear example of the type.)
 Spain – 8 Reales, 1732-1771

Spanish Colonial – 8 Reales, Columnario or Pillar Type

1732-1772 – These would be most likely be from the Mexico
City Mint but could also exist from the Mints of Potosi, Lima,
or less likely from Nueva Guatemala or Santiago.

Pillar Type 8 Reales

Spanish Colonial – 8 Reales, Carolus Type, Charles III,
1773-1789 – These also would most likely be from Mexico
City Mint, but could also be from other Colonial Mints.

Spanish Colonial – 8 Reales, Carolus Type, Charles IIII,

1789-1808 – Same Comment as before

Spanish Colonial – 8 Reales, Ferdinand, 1808-1821

Mexico – 8 Reales, 1824-1896

Mexico – Scale Peso 1871-1873, Rare

United States – Dollar, 1859-S

Spanish Colonial 8 Reales
Hong Kong – Dollar, 1866-1868
1861 Mexico 8 Reales
United States – Trade Dollar, 1873-1878

Japan – Trade Dollar, 1875-1878

French Indochina – Piastre De Commerce, 1885-1928

Great Britain – Trade Dollar – 1895-1938, also 1804

China – Dragon Dollar (7 Mace and 2 Candereens) –

The Chinese Equivalent of these Trade Coins.
1859-S Seated Liberty Dollar

China Dragon Dollar Great Britain Trade Dollar Hong Kong Dollar

This collection could be expanded to include other major trade coins of the World, regardless of
where they circulated. There are many more coins that could be added to the list.
 Read more About Trade Dollars
Bowers, Q. David. Silver Dollars and Trade Dollars of the United States: A Complete Encyclo-
pedia, Volume I. Bowers & Merena Galleries, Wolfeboro, NH, 1993.

Breen, Walter. Walter Breen’s Complete Encyclopedia of U.S. And Colonial Coins. Doubleday,
New York, 1987.

Gullberg, Colin James . Chopmarked Coins: A History; The Silver Coins Used in China, 1600-
1935, iAsure Group JEAN Publications, 2014.

Rose, F.M. Chopmarks. Numismatic International Incorporated, 1987.

White, JD. Chopmarked Coins: Worthless or Historically Significant?

© 2015 by Thomas Coulson