1839-D $2.50 (1839-D Quarter Eagle) NGC MS61. This rare, Southern branch mint Classic Head 1839-D Quarter Eagle has smoldering mint luster within its devices. The coin has an above average strike with full details on most of Libertys hair, about half of the stars, the reverse rims, and the dentils. As expected for a mint state coin, not a trace of wear is seen. The surfaces are clean for the grade with no distractions worthy of individual mention. The 9 of the date was recut and appears to be an overdate, but it is not; and the coin is not a separate variety.

Since 1821 gold had not circulated at face value because the price of bullion was greater than $2.50 worth of gold. The Act of June 28, 1834 made for lower weights for gold coinage, and the new issues circulated well. A new design was sought to differentiate the new quarter and half eagles from the previous issues. In addition the motto E PLURIBUS UNUM was omitted so the public could easily differentiate the new coins from the old. The issue was so successful that the coins circulated until mid-1861. However, after that time they were hoarded because of uncertainty caused by the Civil War.

William Kneass designed the Classic Head motif that was used on both the quarter and half eagle coins. The obverse shows a head of Liberty in profile facing left. She wears a LIBERTY inscribed headband that reveals the curly hair on top of her head, which also flows down her neck. She is surrounded by thirteen six-pointed stars, and the date is below. Dentils are around the periphery of the coin. The reverse shows a heraldic eagle with its head facing left. In its talons are olive branch and arrows, symbols of peace and preparedness. UNITED STATES OF AMERICA is in an arc around the eagle, interrupted by the wing tips. The denomination is below and is written as 2 D. The mintmark appears on the obverse between the truncation and the date.

William Kneass was born in Lancaster, Pennsylvania. He was a field engineer in the War of 1812 and helped fortify the city of Philadelphia. He was an engraver of plates for books and had his business on Chestnut Street in Philadelphia. In addition to line engraving he also made intaglio prints. He worked in two firms, Kneass & Delaker and Young & Kneass & Co. At the Mint, Kneass was known as a popular and useful Engraver, who worked well and quickly to furnish all the dies that were needed for coinage during his time of office. He was remembered as, a warm gentleman of the old-school, who had the rare quality of engaging and winning the esteem and affection of children and youth. Kneass suffered a stroke in August, 1835. From then until his death, Assistant Engraver Christian Gobrecht did the pattern and die work at the Mint. He was succeeded by Gobrecht as Chief Engraver on December 21, 1840.

The discovery of gold in the early 1800s led to the establishment of two of the Southern branch Mints, Charlotte North Carolina and Dahlonega Georgia. In 1835 an act of Congress mandated that these two branch mints would coin only gold. The New Orleans Mint also opened to handle gold from Mexico. In 1838 the first Dahlonega gold coins were made, and they were the Classic Head Half Eagle type. Because of the local alloys high silver content, Dahlonega gold coins often have a green-gold cast. They are also often weakly struck on irregular planchets. Dahlonega gold coins are eagerly sought by collectors and investors because of their low mintages and rarity. Modern D mint coins should not be confused with Dahlonega coins. Today a coin bearing the D mintmark was minted in Denver, which began production in 1906.

The discovery of gold on Cherokee land in Georgia caused a large group of miners to come to the frontier town of Auraria, which is now Lumpkin County, Georgia. Its name derives from aurum, the Latin word for gold. Soon Dahlonega, which meant yellow money in Cherokee, would become the county seat. The miners need to convert oar and dust into bullion led to the establishment of private coiners, including the Bechtlers and Templeton Reid; however, because of a lack of standardization, there was pressure for a federal coinage to be created. The federal branch mint at Dahlonega was established to meet this need.

A building was erected in the town of Dahlonega. Power for its coining equipment came from steam produced in a boiler in the basement. Two small steam driven presses were on the first floor just above the boiler room. They could produce one coin per second. Because of the small size of the presses, the largest coins produced were half eagles.

On April 21, 1838 the Dahlonega Mint produced its first coinage, 80 half eagles. In that year 20,583 half eagles were minted in Dahlonega. The first quarter eagle, the present coin, was made the next year in February.

The 1839-D quarter eagle is a difficult date to find. Most are in circulated condition with AU53 to 58 examples available. Uncirculated specimens are rare. In its population report, NGC shows 7 in MS61 with 7 better. At PCGS there are 2 in MS61 with 10 better.