Guide to Carson City Silver

Historic Significance of the 1893-cc $1 coin

A key date in the Morgan Silver Dollar series
In 1893 the United States witnessed a severe and detrimental economic depression, known as the Panic of 1893. The main culprit lied in over construction in the railroad industry, largely backed by unreliable financing. With national unemployment reaching 11.7% and the closure of nearly 600 banking institutions, this financial debauchery led the country into an economic tailspin. Enacted three years prior, the Sherman Silver Purchase Act was simultaneously serving to artificially depress silver prices. The Act, supported by an unlikely pair of interests: Farmers and miners. Farmers, burdened with debt, wished to create inflation in the U.S. economy, allowing them
to repay deep debts with “cheaper” money. Mining interests hoped that massive government purchases would help drive demand and compensate for overproduction in the western mines. The plan backfired, however, as it instead drove demand for gold, depleting government reserves to dangerously low levels. When the panic of 1893 arrived, president Grover Cleveland oversaw the repeal of the act, but the damage was already done; in fact it would only get worse as silver prices continued to fall. The government suspended the redemption of currency and notes for gold. Confidence in silver had plummeted, and demand for silver coinage largely dried up, making 1893 populations of Silver Dollars especially low. As a result, present day rarity makes the 1893 issue a key date among Morgan Silver Dollars, and a CC Mint specimen in MS64 condition a truly scarce coin, but one available at an appealing price point between greater and lesser grades.

4 pages, published 2014

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