User:RHM22/Flowing Hair dollar

The Flowing Hair dollar was the first federally issued United States dollar coin. It was minted in 1794 and 1795, when it was succeeded by the Draped Bust dollar. The size and weight of the coin were based on the Spanish dollar, a popular coin among residents of the United States. Following a study by Alexander Hamilton, Congress issued a joint resolution calling for the establishment of a national mint. Later, in his annual address to Congress, President Washington urged them to pass legislation giving specifics and providing for a mint. He signed the Coinage Act of 1792 into law on April 2, 1792. The law officially established a mint and defined the weights and measures of the coins it would produce. Though silver and gold coinage could not be struck during the first year of production (1793), the dollar and other silver denominations began mintage in 1794. The dollar, designed by Robert Scot, was minted with the illegal silver fineness of .900. The Flowing Hair design was only minted again in 1795, the year in which it was replaced by the Draped Bust dollar.

Background


Beginning in the 1780s, several prominent Americans called for the establishment of a federal mint in order to supply the United States with official coinage; all such proposals failed due in large part to lack of funds and opposition from individuals and groups who preferred that all coins be struck by the individual states and not by a central authority. Since there were no federal issues, the coinage needs of the states were fulfilled by a variety of domestically and foreign–minted coins, including eight real coins (popularly known as Spanish dollars or pieces of eight) and smaller copper coins issued by various states.

In 1790, following the adoption of the United States Constitution, Congress began deliberating on the state of the nation's monetary system and coinage. On January 28, 1791 Treasury Secretary Alexander Hamilton presented a report to Congress detailing the findings of a study he had conducted on the monetary system and a United States mint. As part of his study, Hamilton had a series of assay tests of Spanish eight real coins; Hamilton recommended that the silver content of the United States silver dollar be based on the average of the reals tested. On March 3, 1791, after reviewing Hamilton's report, Congress passed a joint resolution authorizing a federal mint; the resolution, however, gave no specifics or appropriations.

Establishment of the Mint


In his third annual address to Congress on October 25, 1791, President George Washington urged the members of Congress to put the joint resolution approved earlier that year into immediate effect. In turn, the Senate appointed a committee chaired by Robert Morris in order to create the necessary specifications and draft legislation that would officially create a federal mint and coinage. The committee presented a bill before Congress on December 21, 1791, stating in part that the new dollar coin (the unit on which all other silver coins were based) should contain 371 grains of silver and a total weight of 416 grains, the balance being copper.

One provision in Morris' legislation called for George Washington to be depicted on the obverse of the nation's coinage. The bill passed the Senate after debate, but it was altered in the House of Representatives to strike the provision calling for Washington to appear on the coins and instead call for the head of an allegorical figure representing Liberty to be depicted. Upon returning to the Senate, this portion of the bill was rejected and returned to the original proposal for the bust of Washington. The House rejected the provision for the second time, this time gaining approval from the Senate. The law, known as the Coinage Act of 1792, was signed into law on April 2, 1792 by President Washington. The act provided for the creation of the United States Mint, including the cost of construction and hiring of employees and officials. The denominations sanctioned under the act were half cents, cents, half dismes, dismes, quarter dollars, half dollars, dollars, quarter eagles, half eagles and eagles. On July 31, 1792, the foundation stone of the Philadelphia Mint was laid by newly–appointed Mint Director David Rittenhouse. Machinery and personnel began occupying the new building by September 1792, and production began on cents in February 1793. In the first year of production at the Mint, only copper coins were minted, the reason being that the man intending to become the assayer could not produce the necessary $10,000 surety to officially assume the position; the 1792 Coinage Act stated that both the chief coiner and assayer were to "become bound to the United States of America, with one or more sureties to the satisfaction of the Secretary of the Treasury, in the sum of ten thousand dollars". Later that year, Thomas Jefferson appealed to Congress that the amount of the bonds be lowered. On March 3, 1794, Congress lowered the bonds to $5,000 and $1,000 for chief coiner and assayer, respectively.

Design creation
Early in 1794, engraver Robert Scot began preparing designs for the silver dollar. Scot's initial design depicted a bust of Liberty, while his reverse featured an eagle, as required by the 1792 Coinage Act. Government officials later instructed Scot to include a wreath around the eagle and remove the denomination to the edge of the coin rather than the reverse face. After receiving approval, Scot began engraving the hubs for the new silver dollar. Extra care was taken during the engraving of this denomination, because the dollar would be the largest American coin, and would thus receive the most scrutiny from foreign nations. The lettering was executed by Frederick Geiger, who had worked as a typographer for various books and newspapers. After the dies were created, several copper test pieces were struck. After review, officials determined that the obverse, depicting a right–facing Liberty, was too bare. In response, fifteen stars (representing the fifteen states that had ratified the Constitution to that point) were added along the periphery of the obverse.

Minting
Now that coinage of the silver denominations could begin, the Mint began seeking depositors to bring in silver and gold bullion to be coined. After receiving several deposits, assayer Albion Cox notified Rittenhouse of his beliefs that the .892 standard approved for silver coinage was difficult to produce and that it would darken if put into circulation. Instead, Cox recommended that the purity be modified to .900 fine, but also that the weight be kept at 416 grains. This meant that the new alloy was illegal and that all depositors would be overcharged for their silver bullion deposits, as there was a higher silver content in the coins than was allowed by the Coinage Act of 1792. Before the coins could be struck, the edge lettering and devices had to be impressed on the edge of the planchets. This action was performed with a device known as the Castaing machine; the machine stamped the edge with the words " HUNDRED CENTS ONE DOLLAR OR UNIT " along with ornamentation. As production was inexact, many planchets intended for silver dollars were overweight. This was remedied by filing the face of the planchets; for this reason, the coins vary in weight more dramatically than later issues, which were minted with more precise equipment.

The first silver dollars were struck on October 15, 1794. In total, 1,758 acceptable silver dollars were produced in 1794. Those which were deemed unsuitable for circulation were either melted or restruck in 1795. The 1,758 coins that were officially delivered by Chief Coiner Henry Voight, though acceptable, struck poorly due to the press that was used during early production at the Mint, which was a man-powered screw press intended for use on coins no larger than a half dollar. All acceptable 1794 dollars were paid to Rittenhouse. In an attempt to help circulate the coins, Rittenhouse spent many of the new coins and traded them for foreign coins in an effort to market the new products of the Mint. After the initial production, Rittenhouse ordered all dollar coin production to end until such time as Mint personnel could build a more powerful press that would be capable of better striking the coins. The new coinage press was completed in 1795, and the first delivery of dollars, totalling 3,810 coins, was delivered on May 6. A number of 1795 dollars (along with one 1794 issue) are known to have been struck with a silver plug set into the center, measuring approximately 8 mm. It is believed that this was done to correct the weight of underweight planchets. The total mintage for the second and final year of production is estimated at 160,295. The exact mintage is unknown, as the Draped Bust dollar succeeded the Flowing Hair dollar in the same year, and precise records as to design were not kept at that time.