Before Eagles and Cents: The Wild West of Early American Money 

Imagine a time before the satisfying clink of a quarter or the crisp feel of a dollar bill printed by the U.S. government. It might seem hard to picture, but for the first few decades of its existence, the newly formed United States operated without a national mint or a unified currency. So, how did people buy and sell goods? What did they use as money? The answer is a fascinating patchwork of foreign coins, bartered goods, locally produced paper, and even some early attempts at colonial coinage. Let's dive into this "wild west" of early American money.

Early Stirrings: Colonial Coinage Attempts:

Even before the United States declared its independence, some of the English-American colonies experimented with producing their own coinage. In 1652, the Massachusetts General Court authorized the very first coins struck in the colonies: the simple silver "NE" or "New England" coins. These rudimentary pieces were punch-stamped with "NE" on one side and their denomination in pence ("III," "VI," or "XII") on the other. Unfortunately, their simplicity made them vulnerable to clipping, where people would shave off small amounts of silver.

Recognizing this issue, Massachusetts soon introduced more elaborate designs, including the Willow Tree Threepence, first struck around 1652 but bearing that date on all its issues until about 1660. These coins featured a stylized tree and and inscription within beaded rings. The Massachusetts mint later transitioned to the rocker press, producing Oak Tree coinage (1660-1667) and Pine Tree coinage (1667-1682), though remarkably, most of these also retained the 1652 date (except for some Oak Tree two-pence coins dated 1662). These early colonial coins represent a significant, albeit short-lived, step towards a local monetary system.

Later, in 1737 and 1739, Higley Coppers appeared. Named for Samuel Higley, who mined copper on his land in Connecticut and possessed the skills to create coinage dies, these unique copper pieces bore memorable inscriptions like "VALUE ME AS YOU PLEASE" and "I AM GOOD COPPER," reflecting a certain independent spirit.

Despite these early ventures, attempts to fully replace the often-depreciated colonial paper currency with locally produced coins in Massachusetts (1715), Connecticut (1739), and a proposed plan for all English colonies (1748) ultimately failed to gain traction.

The Reign of Foreign Coinage:

Despite these local efforts, the primary form of hard currency in the colonies remained foreign coinage, especially after most British and European coins tended to flow back to their home countries to pay for imported goods. The Spanish silver dollar, or "piece of eight," became the dominant coin. Struck in large quantities by numerous Spanish colonial mints in Mexico and South America from silver mined or acquired in the Americas, these 8-real coins and their fractional counterparts (½, 1, 2, and 4 reales) were widely accepted and formed the backbone of colonial commerce. Even our terms like "two bits" for a quarter of a dollar are a direct legacy of these Spanish coins.

The Ingenuity of Barter and Commodity Money:

In many areas, especially rural ones, bartering – the direct exchange of goods and services – remained essential. Additionally, certain commodities gained acceptance as a medium of exchange due to their intrinsic value. Tobacco in the South and furs in the trading regions are prime examples. Grain and livestock also served this purpose in agricultural communities.

The Rise of Early Paper Money:

The need for more convenient transactions led to the emergence of paper money, initially issued by individual colonies and states to finance their activities. The fluctuating value and limited acceptance of these notes, exemplified by the phrase "not worth a Continental," highlighted the instability of this system. Later, private banks also began issuing their own paper notes, promising to pay the bearer in gold or silver, but their reliability varied greatly.

Confederation-Era Coinage (1783-1792):

Following the Revolutionary War, even before the establishment of a national mint, there were further attempts at creating local coinage. From 1783 to 1792, individual states and private minters issued various coins and tokens. John Chalmers, a silversmith from Maryland, produced silver threepence, sixpence, and shilling tokens in 1783 that circulated in public commerce. Several private copper tokens and experimental coins for the Confederation also appeared between 1785 and 1787.

Recognizing the need for a more unified system, Robert Morris, the Superintendent of Finance for the Confederation, proposed a decimal-based coinage system in 1782. While his unit, the "mill," wasn't adopted, his idea of a decimal system was crucial. Thomas Jefferson, from the Confederation's monetary committee, advocated for the dollar, based on the widely accepted Spanish milled dollar, as the standard unit, divided into tenths (dimes) and hundredths (cents). Congress adopted this decimal system on July 6, 1785.

Individual states also took initiative. Vermont was the first to authorize a private mint (1785-1786), featuring a rising sun over the Green Mountains and a plow. Connecticut Coppers (1785-1788) largely imitated the British halfpenny design with a laurel-wreathed bust and a seated Liberty on the reverse. New Jersey Coppers (from 1787) depicted a plow beneath a horse's head, while Massachusetts Coppers (introduced in 1787) proved popular and circulated for decades. Notably, the Massachusetts mint was the only state-run facility and the first to adopt the federal resolution of 100 cents to the Spanish milled dollar.

The Dawn of a National Mint (1792-1793):

The inefficiencies of relying on foreign coins and disparate state-level efforts ultimately paved the way for a national solution. The Coinage Act of 1792 authorized the establishment of the U.S. Mint. Early discussions considered featuring George Washington on the coins, but he preferred the image of the goddess Liberty, deeming his own likeness too monarchical.

In 1792, the U.S. Mint produced several pattern coins in limited quantities for consideration, including silver half dismes (half dimes) and dismes (dimes), "silver center cents" (copper coins with a small silver plug), and solid copper cents. Larger copper 1¢ coins known as "Birch Cents" were also struck, and a small number of very rare quarter dollars were produced.

Finally, in 1793, the United States issued its first official circulating coins: copper half cents and large cents. These marked the beginning of a unified national currency, gradually replacing the diverse and sometimes chaotic monetary landscape that preceded it. While foreign gold and silver coins, particularly from Great Britain, Portugal, France, and Spain, and silver coins from France and Spain, remained legal tender until 1857, the establishment of the U.S. Mint laid the foundation for the standardized and recognizable currency we use today.

For the New Collector:

The story of early American money is a testament to the resourcefulness and evolving needs of a young nation. For new collectors, exploring the realm of colonial and Confederation-era coinage offers a tangible connection to this fascinating period. Seeking out examples of Spanish silver, researching the history of your state's early coinage attempts, or learning more about the 1792 pattern coins can deepen your appreciation for the history embedded within each coin. It’s a journey that reveals how the simple act of exchange has been shaped by centuries of innovation and the pursuit of a stable and unified monetary system.