The Twenty Cent Piece
I think it would be a safe assumption to state that most
Coin Collectors knew the Susan B. Anthony Dollar would be a failure, just as the
Sacagawea Dollar has been unsuccessful. The size and weight of the coins
replicates that of the quarter too closely. These examples are not the first
time our government produced coins that replicated another coin in size and
weight. It has been done before, and has failed before. George Santayana said,
"Those who fail to learn the lessons of history are doomed to repeat them." The
U.S.
Twenty-Cent piece (1875-1878) is a great example of a failed coin to examine. It
makes one wonder why the government has not learned from its past mistakes, or
were the politicians, as children, the ones who whined, "Why do I need to learn
history? It's boring!"
Although the founding Fathers of the United States were very fond of, and
considered adopting the decimal system of coinage, the Spanish coinage was
universally accepted around the world, and the U.S. coinage ended up being a
combination of both systems. We find that in the quarter dollar which most
closely replicated the two reales (two-bits), and the disme (later to be called
a dime) representing 1/10 of a dollar. As early as 1791, Thomas Jefferson
proposed the double disme or Twenty-cent coin in keeping with the decimal
system, but Congress realized that the denomination was too close to that of the
quarter, and abandoned the proposition. The same recommendation came to the
table again in 1806, and again it was turned down. When a bill for the proposal
of a Twenty-cent piece resurfaced in 1874, there were strong political
ramifications that had been in the making for years, and this was just the first
step for the Silver Mine Lobby, in Congress, towards having the Silver Dollar
reinstituted.
The Mint Act of 1873 ended the production of the 3¢ silver piece, the silver
half dime and the silver dollar, thereby reducing the amount of silver needed by
the U.S. Mint. Many countries throughout the world were adopting the Gold
Standard, and dumping massive quantities of Silver on the open market. Silver
was cheap. The United States was preparing to follow suite, but with massive
silver strikes occurring in the Western sections of the United States, the mine
owners were not about to sit back and allow this to happen. After all, it was
their money that made a significant contribution financially to the coffers of
the Treasury which aided President Lincoln in defeating the Confederacy. The
U.S. government owed the mine owners, and they were about to collect on their
debt.
Another result of the 1873 Mint Act was an increase in pricing of common goods
by the shopkeepers in the West. Minor coinage was already in short supply, and
with the further reduction of small denominations of coins, the only way to do
business was to decrease the coinage needed for change, and/or shortchange their
customers.
The easy solution of this shortage of minor coins was for the government to
allow the branch mints in San Francisco and Carson City to produce the needed
coinage, but that did not occur until the early 1900s. In February of 1874,
Nevada Senator John Percival Jones introduced a bill in Congress for the
production of the Twenty-cent piece. He sited the reason for this coinage was to
provide merchants with a denomination of coin which would allow them to lower
their prices and/or prevent them from shortchanging their customers. Being a
Senator from Nevada, one would suspect Jones had a hidden agenda of protecting
the interests of the silver mine owners and his position as a Senator. With Mint
Director Henry R. Linderman supporting the bill, and as a favor to Senator
Jones, President Ulysses S. Grant autographed the bill into law on March 3,
1875.
Either Mint Director Linderman knew the mind of Congress and could anticipate
their every move, or his passion for coin collecting influenced his decision
making, but in 1874, he ordered Philadelphia Mint Superintendent James Pollack
to begin preparing pattern coins for this new denomination. The first pattern
design submitted to Linderman seemed to replicate the existing quarter, and he
ordered additional designs produced, but in the end, the Treasury policy which
favored uniformity of design in coins produced of the same metal led to a coin
that looked very much like the existing quarter.
Ultimately, the obverse of the coin depicts a lowered relief of the
Sully/Gobrecht/Hughes design of the seated Liberty, modified by William Barber,
the mint's Chief Engraver. It depicts Miss Liberty seated on a rock with a
shield inscribed with the word LIBERTY at her right foot. She is holding a staff
in her left hand topped with a Liberty Cap. Around the perimeter of the coin
encircling Miss Liberty from the 8 o'clock to the 4 o'clock positions are 13
stars, and centered at the 6 o'clock position is the date. The reverse of the
coin bears the design of Barber's eagle from the Trade Dollar. Along the
circumference of the coin's edge
the legends read UNITED STATES OF AMERICA flanked by a single star on each side,
and the denomination of TWENTY CENTS centered at the 6 o'clock position. To
distinguish this coin from the quarter for the illiterate in society, the edge
of the coin was plain, without reeding. Other then a few minor design
differences between the Twenty-cent piece and the quarter, the two coins
differed in size by only 2.3 mm in the diameter, and 1-1/4 grams in weight. This
new coin was a disaster waiting to happen.
Upon their release for circulation in 1875, the resulting public confusion was
immediate and wide spread. The Twenty-cent piece was extremely unpopular, and
the effect Senator Jones claimed these coins would have on the economy in the
West never came to fruition. The new coin was only issued for circulation in
1875 and 1876 however; proof coins were made until 1878. A bill was introduced
in Congress to repeal the mints authority to produce the Twenty-cent piece in
July of 1876, finally becoming law
in May of 1878. Mint Director Linderman ordered the meltdown of all Twenty-cent
coins on hand, in all of the mint branches, for production of other
denominations. Among the coins melted were 12,359 Carson City 20¢ pieces, most
of which were dated 1876. It is currently estimated that only 18 of the 1876-CC
20¢ pieces are known to have survived.
It makes one think of the wisdom of the founding Fathers of the United States in
their understanding of producing a coin similar to one that had become
entrenched within the social fabric would fail. Then we examine the failure of
the same coin produced as the result of political manipulation. Why does the
government think that production of a similar size coin to one currently in use
will be successful? It is in the history.