George Morgan and his Dollar By R.W. Julian

     The Morgan dollar is perhaps the most widely publicized coin in the United States. There are many who collect it as an investment while others simply appreciate the coin itself. Yet there are very few collectors who know the background to the first issue in 1878.
     Prior to 1849, gold and silver coinage in this country had existed in a fairly stable alliance. The California gold rush of 1849 upset this by introducing great coinages of gold to the marketplace; silver coins were now undervalued and many were melted or exported.
     Congress solved the problem in 1853 by lowering the weights of the subsidiary silver (half dime through half dollar) while leaving the dollar alone. The coinage of dollars was open to anyone with bullion, but subsidiary silver was struck only on government account. To make certain that the right amount of silver was struck, the law stipulated that no silver coin could leave the Mint unless paid for in gold.
     Mint Director James Ross Snowden was not all that impressed with the provision about silver being paid out only for gold and, on his own authority, paid out silver coin for silver bullion at advantageous rates. The country was soon flooded with silver coins but protests became so strong that the Treasury finally had to enforce the law. In 1857 the Philadelphia Mint struck 5.6 million dimes; by 1860 this had fallen to 607,000.
     With the coming of war in early 1861 the surplus of silver and gold began to vanish into a seemingly bottomless pit. By late in 1862 neither was seen in circulation. During the war the government suppressed private bank notes and introduced Greenbacks as a replacement. At the same time fractional notes of less than a dollar (derisively called "shinplasters") were issued to replace the missing silver coins.
     There was increased mining in the West but most silver went abroad to pay for war materials. However, with the end of the war in 1865 use of silver underwent a change. Through 1867 there was a net outflow but gradually the amount of silver mined overcame the need for export. The surplus silver had to go somewhere and bullion owners chose the dollar. The law of 1853, which allowed free coinage of silver dollars was still in effect.
     A law passed in February 1873 was to sweep away the old and bring in the new. The silver dollar was abolished and replaced by the Trade dollar; the new coin, which was slightly heavier, was supposed to soak up the excess silver for shipment to the Orient.
     Beginning in mid-1873 Mint Director Henry R. Linderman attempted to encourage heavy Trade dollar coinage for export as well as put minor silver coins into active use. By early in 1874 he had succeeded with the small silver, but the Trade dollar was to prove a failure in the end. When China and Japan did not take enough silver, Trade dollars were dumped into domestic use, creating political problems for the administration of President Grant.
     Director Linderman thought that new subsidiary silver designs would cause increased coinages because of additional interest and thus use more of the surplus silver. However, Linderman did not think very highly of the Mint engravers, Chief Engraver William Barber and his son Charles, so he decided to import fresh talent for his new designs. He wrote his British counterpart, Deputy Master C.W. Fremantle, asking for help in locating a capable engraver.
     Fremantle made inquiries in the artistic community and recommended George Morgan, a talented artist born in 1845. Morgan was well known in Britain for the quality of his engraving work. After receiving samples of this work, Linderman corresponded directly with the young Englishman; as a result Morgan was offered a contract and left for America on September 27, 1876. In early October he arrived in Washington for a series of conferences with the director.
     Morgan was told that he was to begin modelling designs for possible changes on the subsidiary silver coins, in particular the half dollar. The new assistant engraver was in for something of a shock, however, when he arrived in Philadelphia, the 'City of Brotherly Love.' Someone had forgotten to tell the Barbers about the city nickname and they rudely informed Morgan that there was no room for him at the Mint and he would have to work elsewhere.
     Finding suitable quarters with the help of Philadelphia Mint Superintendent James Pollock, Morgan settled in for a long stay. (He would eventually be given Mint space, but this was months away and the result of a direct order from Dr. Linderman.) His famous head of Liberty was developed in the last weeks of 1876 after he persuaded Anna Williams, a local schoolteacher, to pose for him. Linderman was especially pleased with this first effort and asked Morgan to spare no effort in refining the head to the best possible advantage. During 1877 several pattern half dollars were struck with this head.
     In early 1877 Morgan was directed by Director Linderman to begin work on pattern gold eagles and half eagles. By the summer of 1877 several designs had reached the pattern stage including, in particular, a gold eagle (10-dollar piece) with a refreshingly new eagle on the reverse. It was this eagle which was to grace the reverse of the later Morgan dollar. This, too, was especially appreciated by the director when he first saw it.
     While all of this work by Morgan was being done, the silver market headed towards further problems. The Trade dollar was still interfering with the domestic economy while silver continued its downward plunge in value. There was not enough subsidiary silver being struck to take up the slack and mine owners and bullion dealers were becoming seriously worried about the future.
     The silver forces in Congress, led by Rep. Richard ('Silver Dick') Bland, had several times introduced legislation calling for free coinage of silver by the mints. Each time they failed, but their forces were becoming stronger as time passed. The year 1877 was to prove crucial.
     In the 1850s Director Snowden had openly ignored the 1853 law and struck massive amounts of silver coin. This disappeared in 1861 and 1862 to three places: the melting pot, Canada, and Central America. Those melted did not return but others did, in huge quantities.
     There was so much silver returning to the United States from abroad in 1877 and 1878 that the Treasury ordered the mints to cease striking dimes, quarters, and half dollars. There had been a great deal of silver coin around in 1860 but that in 1877-78 was much worse since the heavy coinages of 1873-77 were now added to it. Silver forces in Congress now geared themselves for action.
     By early November 1877 the silver situation had become critical and Rep. Bland introduced yet another bill for free coinage. There was the usual struggle in Congress but by year’s end the anti-silver legislators had managed to force a deadlock; all knew the quiet would not last.
     Treasury Secretary John Sherman now put pressure on Dr. Linderman to be prepared when dollar coinage resumed. No one knew what form the law would take, but all were certain that there would be a coinage. Linderman ordered William Barber and George Morgan to prepare pattern dollars; it was to be a form of contest, with the winner having his coin design used.
     Barber and Morgan worked quickly and both men used designs previously underway. Morgan, with secret instructions from Linderman, used the head from the pattern half dollars of early 1877 and, for the reverse, the eagle designed for the 1877 gold patterns. Linderman made several trips to Philadelphia for personal inspection and there was a stream of letters on the subject.
     The first dollar patterns, dated 1878, had been made during the first week of December 1877 by both engravers and sent to Washington for inspection. Linderman favored Morgan's, but the race still went on. It was simply too early to make the final decision. The patterns from both men were revised in mid-December and fresh strikings made from dies illustrating the new ideas. Again, Linderman was not satisfied.
     In an effort to bring Morgan's work even closer to his own way of thinking, Linderman asked A. Loudon Snowden, former chief coiner of the Philadelphia Mint and now Philadelphia postmaster, to critique the design without the Barbers knowing about it.
     Snowden spent several hours with Morgan in early January 1878. The two met secretly, probably in the post office, and carefully went over the actual models. This was no problem for Morgan since he did not yet have an office at the Mint and took his models there only to use the reducing machine for dies.
     The former coiner pointed out to Morgan several areas where improvements could be made. There were some high points that needed to be cut down and the general appearance of the eagle feathers was not the best. Snowden also said that, while the eagle was good, it still had a slight "box-like" look. In particular the wing feathers on either side needed to be cut back at the bottom part. Morgan returned to his boarding house to make changes in the plasters.
     As soon as the necessary alterations had been made, on January 28 Morgan again visited Snowden. Snowden gave Morgan high marks for the corrections just made but did have a few more suggestions. However, the criticisms this time were much less broad and covered only a few points, mostly on the reverse. The eagle's beak and head were not quite right and the arrowheads needed some modifications.
     Snowden, who kept Linderman informed of his meetings with Morgan, wrote the director that the design was in very good shape. Morgan then took his plaster models to the Mint and patterns were struck from the newly-revised dies.
     Barber had also been busy and fresh patterns were submitted from both engravers in mid-February. The matter now rested for a few days. February 22 saw Linderman writing Morgan with additional changes he wanted, mostly minor.
     In the meantime the pressure from the silver interests became stronger with renewed attempts by Bland to get his coinage bill through Congress. A major thorn in his side was Senator Allison, who was strongly opposed to free coinage of silver. Allison and Bland decided to cooperate instead of fight (Allison realized that it was politically dangerous to fight a popular measure while Bland saw that half a loaf was better than none) and the result was the Bland-Allison Act of February 28, 1878, ordering resumption of dollar coinage.
     The act of February 28 did not authorize free coinage of silver but rather a controlled coinage. The government was obligated to buy between 2 and 4 million troy ounces of silver each month for coinage. It was, in effect, a massive subsidy for the silver industry.
     The day the act became law Linderman wrote Superintendent Pollock to inform him of the fact and to tell him that Morgan's design had been officially chosen. Technically, the Treasury Secretary and the President made the selection but there was a very strong input from Linderman. Pollock was to inform Morgan but no one else. Linderman made arrangements to visit Philadelphia to get everything moving for actual coinage.
     There was now an effort on the part of all concerned (excepting, perhaps, the Barbers) to be ready for coinage within the shortest possible time. The coiner began stockpiling planchets for the big day while Morgan and the engraving department struggled to have working dies ready as soon as possible.
     On March 11, 1878, at 3:17 P.M., the first good Morgan dollar was struck and saved for President Hayes. Regular coinage then commenced and 40,000 Morgan dollars were delivered by the coiner on March 13. After that, everything flowed smoothly. Well, almost.
     Linderman was of course on hand for the first coinage but then returned to Washington. He came back on the 18th with fresh instructions for changes. Some busybody had pointed out to him that the eagle on the new dollar had eight tailfeathers instead of the traditional seven. Linderman ordered that a revised master die be made showing the 'correct' number of tailfeathers.
     Morgan began work immediately on the revision and by March 26 it was ready for use. Because many reverse dies (with 8 feathers) were on hand, it was decided to use a little "ingenuity". The dies were partially ground down and then reimpressed with a hub containing 7 tail feathers. However, from the way in which it was done, the change shows on some dies and we have the interesting situation where there are two sets of tail feathers, called '7 over 8 feathers' by collectors. There is a small premium attached to such coins.
     By the end of March 1878 the revised dies were in use and regular '7 feather' dollars were being made. Dies were then sent to the branch mints at San Francisco and Carson City where coinage began April 18 and April 20, respectively.
     As if all of the changes made to date were not enough, Linderman visited the Mint again in May with fresh instructions. Morgan once more set to work. This time, however, the alterations were minor and the new dies not put into use until late 1878. This third reverse may be identified by noting that the top arrow feather below the eagle is slanted but parallel on the second set.
     By early summer officials at the two Western mints were complaining that the dies sent them would not strike quality coins. Dies were normally sent out from Philadelphia unfinished and then specialists in San Francisco and Carson City honed down the faces of the dies (which were convex) with a series of grinding tools, called 'basins.' Then the dies were hardened for use. These first dies had some portions of the design which did not strike up well.
      It turned out that Chief Engraver Barber had failed to notify the other mints of the correct way to basin the new dies. Dr. Linderman pointed out to Barber rather strongly that this was not to happen again.
     Collectors may easily obtain specimens of the 1878 silver dollar coinage and see for themselves the changes made by Morgan. Dollars of 1878 in XF are not particularly expensive and may be obtained for around $15 to $20. The patterns are a different story and it would be a truly superb display if some collector was able to show the patterns side-by-side with the finished product.