Why Were Proof Trade Dollars Made So Long After Circulation Strikes Ended In 1878?

PCGS - The Trade dollars of 1873-1885 represent one of the more curious areas of American numismatics. Authorized by the Coinage Act of 1873, the Trade dollar was struck for the purpose of facilitating export transactions with China and was expressly created to compete against the silver Mexican Peso, a large, heavy silver coin that had gained favor with many Asian merchants. The Trade dollar saw widespread use particularly in southern China, where the silver coin proved popular. But use of the dollar coin designed by William Barber wasn't restricted only to foreign trade.


Trade dollar, 1885 T$1 Trade, CAM, PCGS PR65+CAM.

A clause in the Coinage Act of 1873 provided legal-tender status to the Trade dollar for domestic use in transactions up to $5, but they were demonetized in 1876 as silver bullion prices began falling due in large part to the discovery of massive silver reserves in the western states. With Trade dollars then carrying only 82 to 84 cents of precious metal value, calls grew for the government to withdraw the coin altogether or make them fully legal tender at $1 apiece. Secretary of the Treasury John Sherman ordered the discontinuation of orders for new circulating Trade dollars on February 22, 1878.

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