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Sale 48
Lot 1361
1834 $2.50 Classic Head. NGC graded MS-64 Prooflike. A needle sharp strike and delicately toned. A remarkable coin loaded with eye appeal. This is, indeed, a vibrant coin soaking up the mint glow on gold surfaces with nothing to censor it from its refined MS64 grade. Soft-edged devices and lettering throughout the centers are all too often seen on this issue; however, a small percentage of this year's production is found with enough convincing detail to be called "bold" and this is one such coin!
In 1834, a ribbon binding Liberty's hair, bearing the word LIBERTY, replaced the liberty cap. The motto was omitted from the reverse. This design lasted until 1840 when a coronet and smaller head were introduced to conform with the appearance of the larger gold coins. Coins of the 1834 to 1839 vintage were struck at Philadelphia, New Orleans, Charlotte, North Carolina, and Dahlonega, Georgia. By far, the most affordable are the ones issued at the main mint in Philadelphia. Pop 5; 2 finer.
Historic note: From 1829 to 1834, explains Neil Carothers in his Fractional Money, the question of currency reform was constantly agitated. Forty years after the establishment of the mint the coinage system was a discreditable failure. There were three elements in the problem, the circulation of bank notes issued by a host of state banks of every degree of financial integrity, the disappearance of gold as the result of an adverse coinage ratio [15 to 1], and the continued circulation of a non-decimal foreign silver coinage [chiefly Spanish and Mexican] of degenerate condition. The bank note question and the problem of gold coinage were, perhaps, of the more fundamental importance, but the problem of the fractional currency was more immediately pressing and more intimately bound up with the customs and daily life of the people.
In June 1834 a coinage bill became law that altered the situation and did nothing to solve the problem of a shortage of small silver coins. This bill's effect lasted the greater part of two decades; until, that is, the gold discoveries of the California gold rush upset the gold to silver balance once more. The essential provision of the bill of 1834 reduced the weight of the standard gold dollar from 24.75 grains of fine metal to 23.2 grain. In effect, this changed the coinage ratio from 15 to 1 to 16.002 to 1. From a legal standpoint the law was a debasement of the currency by approximately 3 percent. From the standpoint of the fractional coinage it was an egregious blunder. By giving gold a higher value as coin than it could command in the arts Congress had deliberately provided for the cessation of silver coinage. It had virtually adopted the gold standard without any provision for a small change currency!
Estimated Value $14,000 - 16,000.
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| Realized $16,675 |
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