Trade Dollars

Do you remember when we used to dance
And incident arose from circumstance
One thing led to another, we were young
And we would scream together songs unsung
--Asia

In the mid 1800s, Washington policymakers thought America was losing trade opportunities in Asia because the US dollar coin (there was no paper currency back then) contained about 10% less silver by weight than the popular Mexican peso coin circulating throughout the Orient. Subsequently, the Coinage Act of 1873 authorized the production of a heavier coin to be used primarily for overseas trade.

1874 $1 Trade PCGS PR64CAM CAC

Designed by US Mint engraver Charles Barber, the Trade dollar resembled the reigning domestic dollar known as the 'Seated Liberty' dollar. On the obverse, Ms Liberty is still in a seated position and looking left. However, rather than sitting on a rock she is sitting on a bale of commodity-like merchandise with a chaff of wheat at her back and an olive branch in her grasp--all consistent with the commercial character of this coin.

While used primarily overseas, Trade dollars were legal tender domestically until 1876 although they continued to circulate afterwards. Proofs were struck in small quantities from the original year of issue 1873 until 1885--seven years after commercial production ceased in 1878.

The Trade dollar remains the only US money developed exclusively for external use.