Coins are the foundation of the vending industry. The first vending machine was coin operated. Current machines offer many payment options, but coins are still a mainstay of the industry. This month lets look back at the history of coins in the US.
There were three general types of money in the colonies of British America: specie (coins), paper money and commodity money. Commodity money was used when cash (coins and paper money) was scarce. Commodities such as tobacco, beaver skins, and wampum served as money at various times and places.
The first officially sanctioned coinage to circulate in the United States was the Spanish Real, or piece of eight. It was recognized until 1857. The first official coin actually minted and circulated by the United States was the half disme or half dime. According to legend, these first half disme coins were minted from Martha Washington’s silverware.
When Was The First Coin Made in The United State?
The standard answer is 1792. That is because the US Mint was established by the Coinage Act of 1972. The first coins authorized and minted in that first year were the:
- $10 gold eagle with 270 grains (17.5g) of pure gold
- $5 gold half eagles with 135 grains (8.75g) of pure gold
- $2.50 quarter eagles with 67 and 4/8 grains (4.37g) of standard gold
- $1 dollars with 416 grains (27g) of pure silver
- Half dollars with 208 grains (13.5g) of standard silver
- Quarter dollars with 104 grains (6.74g) of standard silver
- Dimes, spelled “dismes” until the 1800s, had 41 and 3/5 grains (2.7g) of silver
- Half dimes with 20 and 4/5 grains (1.35g) of standard silver
- One cent with 11 pennyweights (17.1g) of copper
- Half cents with 5 and 1/2 pennyweights (8.55g) of copper;
The First American Coin
But these were not the first coins minted by our nation. When the newly freed colonies were still governed by the Articles of Confederation, Robert Morris served as the superintendent of finance for the United States from 1781 to 1784. Morris, a Philadelphia merchant and signer of the Declaration of Independence had proposed a different set of coins. His monetary plan called for a five denomination set: a silver 1,000-unit mark, a silver 500-unit quint, a silver 100-unit bit, an 8-unit copper and a 5-unit copper.
In an April 2, 1783, entry in his diary, Morris writes of “a Piece of Silver Coin being the first that has been struck as an American Coin.” Alexander Hamilton, who later became the first US Treasury Secretary, visited to examine the coin and corresponded with Morris about the coins.
A more complete set of these new coins were produced that month and forwarded to Thomas Jefferson for his consideration.
The first “500” quint was a 1783 plain obverse Nova Constellatio “quint” silver coin. Photo
The Continental Congress nation-building process included authorizing Morris to demonstrate a prototype numerical currency system based on the Spanish dollar. Morris’ 500 quint coin was actually the first coin authorized by Congress. Though it technically was the first coin produced by our fledgling nation, the 500 quint was never adopted or distributed.
It is interesting to stop and look back at our history. We see our currency almost was quite different.