1861-D Gold Dollar - Produced by the Confederate States of
America By
Jaime Hernandez - June 23, 2008
Every
day, we spend (and sometimes collect) coins which help us
relive American history. Decades ago, it was still possible
to collect significant treasures from circulating coins. Over
one hundred years ago the 1861-D Gold Dollar also circulated
through our monetary system. Today this coin is definitely
an important part of American history. The 1861-D Gold Dollar
is the only regular issue U.S. coin whose entire mintage was
produced by the Confederate States of America. The compelling
history behind the 1861-D Dollar has inspired many Gold Dollar
specialists and collectors because of the intriguing story
and harsh era in which the 1861-D Gold Dollars were produced.
"So, you can hardly blame me if I still
consider the 1861-D Dollar my favorite coin." This was
a remarkable phrase used by Max Mehl, one of America's greatest
numismatists, when he was describing an 1861-D Gold Dollar
he was offering for sale. Significantly, Mehl also used different
grading terminology when describing the condition of an 1861-D
Gold Dollar such as "slightest cabinet friction,"
a popular term for describing AU coins at the time.
In the early 1820s, the United States was
experiencing one of its first major gold rushes in the South.
During this period, it wasn't safe to transport any valuables
from one part of the country to another. Transporting mined
gold from Georgia, South Carolina, Alabama and Virginia to
the Philadelphia Mint proved to be very challenging and extremely
dangerous. Transporting gold was very costly and consisted
of traveling through inhabited territory, and the journey
to Philadelphia took weeks. Many times bandits would try to
steal the gold that was being transported to the Philadelphia
Mint.
The solution for this problem was to build
branch mints in the South. On March 3, 1835 Congress established
a new bill allowing three branch mints to be developed in
the South. The Dahlonega Mint began striking its first coins
in January 1838. The staff at the Dahlonega Mint consisted
of only four men. For every 500 coins struck, one assay coin
would also be sent off to the Philadelphia Mint to verify
its gold content and purity. For 22 years, the Dahlonega Mint
struck coins under the authority of the United States of America.
However, in 1860 there was major disagreement over slavery
laws and political issues between the North and the South
which caused several Southern states to secede from the union
of the United States of America.
In 1861, the Civil War began. This same year,
the governor of Georgia ordered Confederate troops to take
over the Dahlonega Mint, which they did. On March 9, 1861
the Confederacy passed a bill authorizing the New Orleans
Mint, Charlotte Mint and the Dahlonega Mint to continue producing
coinage under the Confederacy. However, due to an evaluation
completed by the Confederacy, the mints would not generate
enough income to support their own minting and on March 14,
1861 the Confederacy decided to close the branch mints instead,
effective June 1, 1861.
In the meantime, the 1861-D Dollars would
still be struck sometime in April or May of 1861. The Confederates
used an old obverse die of an 1860-D Gold Dollar to strike
1861-D Dollars. Additionally, there were very little gold
reserves in the Confederacy for producing the 1861-D Gold
Dollars, and this is why there was such a small mintage.
Overall, it is a numismatic wonder that 1861-D
Dollars exist today, since there was a very short time period
for the coins to have been produced and they were produced
under extremely harsh conditions. Some specialists suggest
that anywhere from about 1,000 to 1,500 pieces were produced,
while others have estimated anywhere from 2,350 and up to
3,250.
The Civil War ended on April 9, 1865, and
the Union States of America regained control of the Southern
States. The Dahlonega Mint would never be reopened again.
Therefore, the 1861-D Gold Dollar is the last gold dollar
the Dahlonega Mint ever produced.
Currently, the 1861-D is the second rarest
U.S. Gold Dollar following the 1849-C Open Wreath. Nevertheless,
the 1861-D Gold Dollar still remains the most intriguing coin
of the Branch Mint gold dollars. The fact that the 1861-D
Gold Dollar was struck by official U.S. coin dies under a
U.S. Branch Mint during the Civil War by the Confederacy only
adds to its mystique. Therefore, the 1861-D Gold Dollar has
all the ingredients of being an important piece of American
history and numismatics.