As a lifelong coin collector and professional numismatist, I‘ve had the privilege of handling countless rare and historic coins over the years. Yet few issues capture the imagination and spark the passion of collectors quite like the 1878 silver dollar. These large, hefty coins are more than just monetary instruments; they‘re tangible pieces of American history that tell the story of a nation in transition.
In this comprehensive guide, we‘ll embark on a journey through the fascinating world of 1878 silver dollars, exploring their origins, design variations, and lasting significance. Whether you‘re a seasoned collector or just starting to dip your toes into the world of numismatics, this article will provide valuable insights and tips for appreciating and collecting these iconic coins.
The Comstock Lode and the Birth of the Morgan Dollar
To fully understand the importance of the 1878 silver dollar, we need to travel back in time to the late 1850s and the discovery of the Comstock Lode in Nevada. This massive deposit of silver ore would go on to produce more than $300 million worth of the precious metal, transforming the American West and setting the stage for the creation of a new silver dollar.
In the years following the Civil War, the U.S. economy was in a state of flux. The Panic of 1873 had sent shockwaves through the financial system, and there was growing pressure to increase the money supply and inflate prices. Western mining interests, in particular, were eager to see a return to the free coinage of silver.
Their wishes were granted with the passage of the Bland-Allison Act in 1878, which required the U.S. Treasury to purchase between $2 million and $4 million worth of silver each month to be coined into dollars. This legislation laid the groundwork for the creation of the Morgan dollar series.
George Morgan‘s Masterpiece
The task of designing this new silver coin fell to a talented British engraver named George T. Morgan, who had recently joined the U.S. Mint. Morgan set out to create a coin that would inspire confidence and be seen as a symbol of American prosperity.
For the obverse, he chose a neoclassical profile portrait of Liberty, modeled after Philadelphia schoolteacher Anna Willess Williams. This iconic image, with Liberty wearing a Phrygian cap and a ribbon inscribed with the word "LIBERTY," would become one of the most recognizable in numismatics.
The reverse features a heraldic eagle with outstretched wings, clutching an olive branch and arrows in its talons. The inscription "IN GOD WE TRUST" appears above the eagle‘s head, while "E PLURIBUS UNUM" and the denomination "ONE DOLLAR" are found below. This powerful design was meant to convey a sense of national unity and strength.
1878 Silver Dollar Varieties and Diagnostics
With the design finalized, production of the new silver dollars began in earnest at three U.S. Mint facilities: Philadelphia, San Francisco, and Carson City. Each of these branch mints left its own unique mark on the coins, both literally and figuratively.
The most obvious difference between 1878 dollars is the presence or absence of a mint mark. Coins struck at the Mother Mint in Philadelphia bear no mark, while those from San Francisco and Carson City feature an "S" or "CC" respectively on the reverse below the eagle. The Carson City issues, in particular, are highly coveted by collectors due to their relative scarcity and connection to the Wild West.
But mint marks are just the beginning when it comes to differentiating 1878 silver dollars. The series is known for its numerous die varieties, particularly on the reverse. Early examples featured an eagle with 8 tail feathers, but this was soon modified to 7 tail feathers partway through the year. Some coins even show an overdate, with a 7 punched over an 8.
Other notable variations can be found in the eagle‘s breast (flat vs. rounded) and the arrangement of the arrow feathers near its feet. Collectors who specialize in the series will pay close attention to these minute details, as they can dramatically impact a coin‘s value and desirability.
Seasoned numismatists will also examine 1878 dollars for various die diagnostics, such as cracks, breaks, and gouges. These can help tie a coin to a specific die pair and provide clues about its place within the production sequence. In some cases, dies used to strike 1878 dollars were reused in later years with slight modifications, creating even more variety for collectors to pursue.
Grading and Eye Appeal
As with any collectible coin, the condition and eye appeal of an 1878 silver dollar play a major role in determining its value. The industry standard for grading coins was established by Dr. William Sheldon in the 1940s and has since been refined by third-party grading services like PCGS and NGC.
For Morgan dollars, the difference between a coin graded MS-65 (Gem Uncirculated) and one graded MS-67 (Superb Gem Uncirculated) can be tens or even hundreds of thousands of dollars. Factors that influence a coin‘s grade include the level of preservation, luster, strike sharpness, and the presence or absence of distracting marks or blemishes.
When evaluating an 1878 silver dollar, pay close attention to the high points of the design, such as Liberty‘s cheekbone and hair as well as the eagle‘s breast feathers. These areas are prone to wear and will often show the first signs of friction. A coin with fully struck details and frosty, undisturbed luster will command a significant premium.
Eye appeal is another important consideration, albeit a more subjective one. This refers to the overall aesthetic quality of a coin, including its color, toning, and visual impact. A high-grade 1878 dollar with rich, iridescent toning and a "wow factor" can sell for multiples of a similarly graded coin with a more pedestrian appearance.
Survival Rates and Valuations
So just how rare are 1878 silver dollars in high grades? The answer varies depending on the specific issue and mint mark. While millions of these coins were struck, the vast majority saw heavy circulation and are found well worn.
For example, the Philadelphia Mint produced 10,500,100 silver dollars in 1878 across several reverse types. Of these, PCGS estimates that around 800,000 survive in all grades, with just 35,000 in Mint State. The finest known 1878 Philly dollar is a sole MS-68 example that sold for $470,000 in 2022.
Compare this to the Carson City issue, which had an original mintage of 2,212,000. Today, it‘s estimated that only 85,000 survive, with a mere 5,500 in Mint State. The highest graded 1878-CC dollar is a single PCGS MS-65 coin that brought $1,187,500 in 2022, underscoring the incredible premium placed on condition rarity.
Here‘s a table breaking down survival estimates and valuations for the three major 1878 issues in different grades:
| Variety | Mintage | All Grades | Mint State | MS-65 | MS-67 | Value Range |
|---|---|---|---|---|---|---|
| 1878 Philly | 10,500,100 | 800,000 | 35,000 | 1,200 | 1 | $50 – $470,000 |
| 1878-CC | 2,212,000 | 85,000 | 5,500 | 1 | 0 | $250 – $1,187,500 |
| 1878-S | 9,774,000 | 550,000 | 27,500 | 1,400 | 3 | $60 – $576,000 |
As you can see, even common date 1878 dollars can be quite valuable in high grades, while the rarest issues like the 1878-CC command astronomical premiums. For collectors on a budget, circulated examples of the various issues can be obtained for under $100, offering an affordable entry point into the series.
Building a World-Class Collection
For serious Morgan dollar enthusiasts, assembling a complete set of 1878 issues is a true badge of honor. This feat requires not only deep pockets but also patience, persistence, and a keen eye for quality.
Many of the finest 1878 dollars are part of legendary collections, such as the Coronet Collection, which was auctioned by Legend Rare Coin Auctions in 2015. This stunning set included a complete run of 1878 issues, all graded MS-66+ or higher by PCGS, with several ranking as finest known examples.
Another famous assemblage was the Jack Lee Collection, which featured an incredible array of toned Morgan dollars, including several high-grade 1878 specimens. The vibrant rainbow hues on these coins are the result of years of storage in original Mint-sewn bags, which allowed for the gradual reaction between the silver surface and trace elements in the canvas.
For collectors looking to build their own world-class set of 1878 dollars, working with a trusted dealer or auction house is essential. Be prepared to pay record prices for the rarest and highest graded examples, but also know that there are plenty of opportunities to acquire beautiful, high-quality coins at more affordable price points.
Tips for Storing and Preserving Your Collection
Once you‘ve started acquiring 1878 silver dollars, it‘s important to take steps to properly store and preserve them for future generations. These coins are made of 90% silver, a soft and reactive metal that can easily tarnish or develop unsightly blemishes if not handled with care.
One of the best ways to protect your coins is to house them in inert, archival-quality holders such as those used by PCGS and NGC. These plastic capsules are designed to create a sealed microenvironment that prevents moisture, air, and other contaminants from reaching the coin‘s surface.
For long-term storage, consider keeping your coins in a cool, dry place with stable humidity levels. Extreme temperature fluctuations can cause condensation to form inside holders, leading to spotting or discoloration over time. A safe deposit box or fireproof home safe is ideal.
When handling your coins, always do so by the edges to avoid leaving fingerprints or smudges on the delicate surfaces. Wear cotton gloves if possible, and never attempt to clean or polish a coin yourself, as this can permanently damage the patina and reduce its value.
An Enduring Legacy
As we‘ve seen, the 1878 silver dollar is more than just a collectible coin; it‘s a tangible piece of American history that tells the story of a nation in the midst of great change. From the Comstock Lode to the halls of power in Washington D.C., these coins have born witness to some of the most pivotal moments in our country‘s past.
For collectors, owning an 1878 silver dollar is a way to connect with that rich heritage and to hold in our hands a small piece of the American experience. These coins have been passed down through generations, serving as family heirlooms and cherished mementos of a bygone era.
But beyond their historical significance, 1878 dollars also represent a sound financial investment. Over the years, rare coins have proven to be a reliable store of value and a hedge against inflation and economic uncertainty. As tangible assets, they offer a level of security and peace of mind that few other investments can match.
Of course, as with any investment, it‘s important to do your due diligence and to work with reputable professionals. But for those who take the time to educate themselves and to build a carefully curated collection, the rewards can be truly life-changing.
So whether you‘re a seasoned collector or just starting your numismatic journey, I encourage you to take a closer look at the 1878 silver dollar. With its rich history, stunning designs, and enduring legacy, it‘s a coin that truly has something to offer everyone. And who knows? You just might find yourself holding a piece of history in your hands.
