1878-S Trade Dollar. MS-66 (PCGS). Secure Holder.；Simply a delight to behold, this premium quality Gem trade dollar offers smooth satin luster, razor sharp striking detail and iridescent peripheral toning in powder blue and copper-apricot. This coin is as nice as any circulation strike trade dollar that we have handled in recent sales, irrespective of date or issuing mint. It would be an excellent candidate for a high grade type set.<p>Although it had been a great success in overseas commerce beginning with its introduction in 1873, the trade dollar suffered a setback in 1876 from which the denomination never recovered. In that year silver prices dropped to the point where a trade dollar contained only 91 cents worth of silver, a significant reduction from the $1.02 bullion value of these coins at the series debut. The federal government reacted quickly and, as one of its provisions, the Act of July 22, 1876, demonetized the trade dollar within the United States and limited its coinage for use in the export trade (the raison detre for the denomination, anyhow). Circulation strike production continued apace, as a result, with the 1877-S setting the mintage record for the series at 9,519,000 pieces.<br /><br />On February 22, 1878, however, Treasury Secretary John Sherman halted trade dollar coinage for commercial use. Brother of the famous Civil War general, Sherman was a foe of the trade dollar and, with the standard silver dollar re-authorized through the Bland-Allison Act of February 28, 1878, western mining interests were more than content with that outlet for their precious metal. The Philadelphia Mint struck only Proof trade dollars in 1878, although final circulation strike productions took place in Carson City and San Francisco. Thereafter the trade dollar was made only in Proof format and only at the Philadelphia Mint through the series official end in 1883.<br /><br />The last of the San Francisco Mint trade dollars, the 1878-S registered a generous mintage for the type at 4,162,000 pieces. Many of these coins were struck after Treasury Secretary Sherman officially halted production as the San Francisco Mint had existing bullion deposits and orders that had to be met. The 1878-S emerges as a significant rarity in the finest Mint State grades. This coin with its outstanding technical quality and eye appeal will attract many strong bids when it crosses the auction block in Baltimore.
