1894 $1 MS (PCGS# 7228)

2011 January Tampa FUN Signature & Platinum Night US Coin Auction #1151

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    Heritage Auctions
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Lot Description
1894 $1 MS65 PCGS. CAC. The Morgan dollar's creation in the Bland-Allison Act of 1878 was the result of silver-subsidy politics, and the same politics brought about the denomination's eventual demise. The Act of July 14, 1890, better known as the Sherman Silver Purchase Act, updated the original Bland-Allison Act by providing for an even greater level of silver subsidy purchase by the U.S. Treasury, and further specified the issuance of Treasury notes. One sentence in Section 2 of the Sherman Silver Purchase Act nearly collapsed the U.S. government's financial position in 1893: {blockquote}"That upon demand of the holder of any of the Treasury notes herein provided for the Secretary of the Treasury shall, under such regulations as he may prescribe, redeem such notes in gold or silver coin, at his discretion, it being the established policy of the United States to maintain the two metals on a parity with each other upon the present legal ratio, or such a ratio as may be provided by law."{/blockquote} Note holders, disagreeing with the government's ratio, virtually drained the nation of its gold reserves in conjunction with the Panic of 1893, and among other government action, the silver purchase and coining provisions of the Sherman Act were repealed. Without that legal support, strikings of silver dollars plummeted, down to just 110,000 business strikes for the 1894 Philadelphia issue. That date, while desirable, is not properly termed a condition rarity until the MS65 level; once there, though, it is among the most coveted coins in the entire Morgan dollar series. This Gem, which is housed in a green label holder, has frosty silver surfaces with orange and golden-brown toning at parts of the margins. Well struck, if a trifle soft at the hair over Liberty's ear, with great all-around eye appeal. Population: 21 in 65, 4 finer (11/10).
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