Money In The Mining District

[Larry Koschkee]

Edward Langworthy, one of four brothers that figured prominently in the development and settlement of the Mining District spoke of various forms of money exchanged. The brothers were present in the district as early as 1824. This recollection source is: The Iowa Journal of History and Politics, Vol III, July 1910, State Historical Society of Iowa, Iowa City, Iowa.

At this time, and for many years previous, the whole business of the country was done by barter, changing one thing for another. Not a dollar was in circulation. But there were quarters, bits and picayunes. A quarter was one-fourth of a silver dollar cut into equal parts but the skillful and designing often made five pieces. A bit was one-eighth of a dollar and a picayune in like manner one-fourth of a quarter cut with a chisel from the center to the circumference.

Hmmmm... Is it a violation of a federal law to disfigure or destroy money presently and perhaps also the case in the 1820s or 1830s?

In the coin collection world are quarters, bits and picayunes considered collectable and of value?

I seem to recall, the Secretary of The Old Lead Region Historical Society, Mr. Robert Braun, carries Spanish coins in his saddlebags. Wonder if he has some of the items described in this thread?

[Robert Braun]

Larry brings up one my most favorite topics -- money and mediums of exchange in Jacksonian America. Indeed, we covered a topic like this in a past ediiton of the OLRHS newsletter.

We can relax about cocerns regarding defacing US specie, as the predominant medium of exchange in the District appears to be Spanish milled dollars-- legal tender in the US until about 1850. With each SMD worth eight "reales," they divided easily on the blacksmith's anvil to two, four or eight pieces, called "bits." Auggie Dodge wrote that his mother made buckskin pockets in the clothing of father Henry for purposes of carrying this "fractional currency."

Money is a tough subject to get one's arms around in the 1820s-1830s. There was no real standardized federal currency until the Civil War, hence most transactions were handled in barter, or in "specie" or hard money. Much of THIS was either English shillings pounds and pence, French specie, or Spanish milled dollars (which were silver; "dabloons were gold.) The limited number of American banks occasionally offered their own paper currency, which may or may not be regarded as legal tender by local vendors and merchants.

Valuation is even tougher. In the 1830s, American dollars were still indexed to the English "pound sterling"-- and this value varied from state to state. In New York, for example, a dollar was worth eight English shillings-- a valuation STILL used on the New York Stock Exchange (didn't you always wonder how a stock on the NY Exchange could go up or down by a fraction of 1/8? This is why!) In New England, Kentucy, and Virginia, the dollar was worth 6 shillings. (There were 20 shillings to the pound, and 12 pence to the shilling!) As you can see, this did not translate well into Spanish milled dollars, so most Americans in the Lead District stuck to quarters, bits, and such.

Indeed, there's not much so comforting as a deerskin bag of dollars, bits, "short-shillings" and picayunes in one's saddlebags!

A great topic!

Bob Braun.

[Larry Koschkee]

Bob,

Thanks for the indepth information on the topic of this thread.

I am sure many of the message board members have viewed various historical sources stating the worth of mining claims in the District. If stated specificaly in dollars or $ sign would the value be most likely Spanish milled dollars? Would this value continue to stream from the first point of sale - "cash on the barrel-head" at the smelter, on down the logistics material chain to the ultimate consumer? Or did the SMD's have a one for one value exchange only in the District?

Did the SMD's worth get devalued or increase in value when exchanged with another recognized currency? (i.e. what we see today in the Canadian dollar versus the U.S. dollar)

warm regards,

Larry K

BTW, Bob how does a militiaman such as yourself expect to get close to the enemy with all that coin jingling in your saddlebags? They could probably hear you coming or going for a country mile...

[Robert Braun]

Larry-- as best as I can determine, Spanish Milled Dollars were the major medium of exchange in the district. At least one account indicated that specie was the exclisive medium of exchange, there being no "folding money" at all.

It is likely that there were other specie in the District-- French coinage, and probably English as well. While the exchange rates varied with the money of different nationalities, I am comfortable in asserting that the "standard" for the District was Spanish silver.

And, to be truthful, Larry--- it isn't so much the jingling of silver in them saddle bags, but the noise made those seven point Spanish rowel spurs that I bought in St. Louis. Some feller told me they come all the way from some place called Sante Fe, in Spanish Mexico. Imagine that!

Best to be prepared though--- one never nows when one will come across a grocery, dice game or faro board in the wilderness!

Warm personal regards...

Bob.