1877 U.S. Trade Dollar

The coining of more than three million trade dollars at the Philadelphia Mint in 1877 is ample proof that most of this production was intended for profiteering. Holders of silver bullion deposited it with the mint and received trade dollars in return at their bullion value, stating that the coins were intended for export. Since the intrinsic value of trade dollars had fallen to around 90 cents by this time, the coins received represented a profit if placed into domestic circulation at their nominal face value of one dollar. Though this had been prohibited when the trade dollar’s legal tender status was repealed in 1876, the law was unenforceable.