Would anyone care to speculate why a three cent piece was needed in 1837?

One of my big purchases at the Winter FUN Show was this Feuchtwanger three cent piece that features "the defiant eagle."



This one of two minor varieties of the Feuchwanger three cent that have an eagle in the design. This piece is graded MS-63 PL. It is rarity rated as an R-7, and there are not a lot of these pieces around.

The most common Feuchtwanger three cent piece has the New York State Seal on the obverse.



The question was, what was so important about a three cent piece in 1837? The Red Book has stated that the Silver Three Cent Piece was authorized because the postal rate was reduced to that level in 1851. My research shows that really happened in 1863. Nevertheless, why do Feuchtwanger issue three cent pieces in 1837?

It's a question for which I can't find an answer.

If you want to discuss the Feuchtwanger three cent token in more detail, we can do that too.

 

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The reason I've always seen was that it was to introduce a new alloy "German silver" and to persuade the government to use it for coinage. During a coin shortage, the coins started to circulate as change. I'm more than willing to learn more.

 

Possibly due to the financial crisis during Andrew Jackson's (1829-1837) term as President. Coins were hoarded and banks collapsed. But correct me if I'm wrong. Also, see this... Historic Feuchtwanger cent (coinworld.com)

 

I was looking for a nice Feuchtwanger (FW) cent at FUN but couldn't find one. Glad you found this 3 cent and it's a nice one.

I suspect that the issuance of the FW three cent token in 1837, in addition to the Hard Times aspect of the times, had to do with 1837 being the last issuance of the half dime. At that time there would have been no denomination between the cent and the dime. Maybe the dentist fealt that a three cent token would fill the gap?

 

No there was no break in the issuance of the half dime. Only the design changed.

 

My understanding is that the original 3 cent pieces were created to ease the sale of "postage" and eliminate the need to make change (as there was a major shortage of small coinage at the time.) as for the Feuchtwanger those were created to do 3 things... ease that coin shortage, introduce the "alloy" that was used to produce the Feuchtwanger's (the mint decided against this) and lastly as an outright "storecard" token to advertise the store...

 

Thought that was the reason for the government issued pieces 14 years later.

 

I suppose it's because a four-cent coin would've been ridiculous.

Or maybe he realized that a three-cent coin does a better job making change than a five-cent coin:

 

Yes, of course you are correct. I'm so focused on the Capped Bust series that I forgot about the Liberty Seated.

 

That's what I meant by "original" even if the Feuchtwanger's 3 cent piece came out 14 years earlier hehe

 

There were two rate decreases one for letters under 500 miles and then one for all letters.


I would hazard to guess that the 3c denomination is precisely because in 1837 there was no conceivable need to have a 3c coin and he couldn't be accused of counterfeiting.

 

How about his 1c coin...

 

My tongue in cheek guess is that the 3 cent coinage was tied to prostitution pricing. Wow, that 3 cent is a rare beauty with the eagle - I stretched my budget a while back to pick up a body bagged (altered surface) Feuchtwanger 3 cent piece with the NY seal - I think the characters look like space aliens. I also have a decent 1 cent in a PCGS slab graded XF45. It's interesting how the eagle faces the opposite direction on the 3 cent vs. his 1 cent - they are similarly depicted but with some notable differences.

 

US Postal rates in 1837 were as follows.
A single sheet letter mailed up to 30 miles was 6 cents. The cost went up to 10 cents if mailed from 30 to 80 miles, 12½ cents for 80 to 150 miles; 18¾ cents (1½ Spanish reales) for 150 to 400 miles; and 25 cents for a single sheet mailed more than 400 miles.

In 1845, uniform postage rates were adopted, 5 cents for a half-ounce letter sent any distance less than 300 miles and 10 cents for a half-ounce letter sent over 300 miles. When the first US postage stamps were issued in 1847, they carried face values of 5 cents and 10 cents.

In 1851, the basic rate was reduced from 5 cents to 3 cents and the first 3 cent stamps were issued. The 3 cent silver coin was introduced that same year.

It seems unlikely that Feuchtwanger's 3 cent piece was related to postage. I like the idea outlined above that Feuchtwanger may have seen a 3 cent coin as an improvement over the half dime, particularly if this new and improved denomination were struck from his special alloy.

 

I am with @mrweaseluv on this one. I am sure I have read that three cent coins were struck specifically to address postage rates.

 

They clearly were, the debates in Congress and the statute ultimately passed are linked. 9 Statutes At Large 587:

https://tile.loc.gov/storage-services/service/ll/llsl//llsl-c31/llsl-c31.pdf


blah blah blah blah through ten sections until:


Also since we often talk about tolerances in individual coins note 3 things:

• The fineness of the silver to be used at the ingot level,
• Weight tolerance for a single coin, AND
• Weight tolerance for 1,000 coins.

 

The problem with the postage stamp theory, of course, is that Feuchtwanger prepared his patterns 3 years before postage stamps were invented, 10 years before postage stamps were first issued in the United Stated and 14 years before a 3 cent rate was first adopted.

 

It had more to do with the Bimetallic Standard vs. the colonial Real, and also the Fed not allowing copper for payments. The Fed was losing $ on the Real exchange Rates, and Congress had made a number of Proposals over the years, to fix the problem and all were rejected, until they came up with the "Its about stamps" scheme, to get it passed. This was more about the 75/25 composition and the loss vs Gold by allowing the Real exchange Rate.

There were a few Congress members (and 2 members of Senate) that moaned and moaned at the worn status of Reals, and the Colonials complained the inequality was due to the Comanchero Trade East of Colorado and New Mexico, and North of Texas, which was hijacked so money could be made on the silver exchange Rate.

Who knows...once the Feds were involved. somebody was making wampum somewhere and the Fed Lawmakers had their little fingers in the Prairie Stew, you can bet on it.

 

Interestingly, I read that the 18¾ cent rate mentioned above was originally 18½ cents but 18½ cents took a minimum of 6 coins to pay, causing problems for customers. 18¾ cents, on the other hand, required only two coins - a real and a half-real!

 

The Half was traded at a 6 cent Rate, the Real at 12 cent Rate, instantly unbalanced against the Fed silver Rate.