U.S. Coinage and the War of 1812

If a list of America’s “forgotten” wars were compiled, the War of 1812 would certainly rank near the top. Thumb too quickly through any United States history book, and you’re likely to skip right past the scant few pages typically devoted to this conflict.

The goal of this article is twofold: (1) Present a basic understanding of the causes, execution, and aftermath of the War of 1812, and (2) Study coinage types issued by the United States during those wartime years, how coinage was affected by the war, and to measure modern day collector interest in coins from that long ago era.

** (1) Causes of the Conflict
** (2) United States Coinage during the War of 1812
** (3) The Americans Fight the British Again
** (4) The United States Emerges a Stronger Nation
** (5) Coins from the War of 1812 and Today’s Collectors

** (1) Causes of the Conflict:
There are a number of factors causing the Americans to take on the British for a second time. They are:

-- Impressment of American seamen. The British sometimes raided U.S. ships in search of deserters. Often, seamen were seized, or impressed, and foricibly taken away. The most infamous impressment episode occurred in 1807 when the British warship HMS Leopard opened fire on the frigate USS Chesapeake, killing three and wounding 18 before boarding.

-- Desire for New Territories. Pioneers living in the northwestern part of the U.S. were looking for new farmlands, but were not eager to settle the treeless prairies to the west. The timbered regions of southern Canada were more attractive. To the south, denizens of those states eyed Spanish Florida, not only for farming potential, but because the peninsula was a haven for runaway slaves and Indians who regularly attacked frontier outposts. A war with Britain might give the Americans a justification for seizing Florida, since Spain was a close friend of Britain.

-- Native American Relations. As frontiersmen advanced westward, indigenous peoples fought back to preserve their ancestral lands. Encouraged by British Canadian agents, a confederation of Indian tribes, led by a Shawnee chief named Tecumseh, began offering organized resistance. Alarmed westerners demanded retaliation to dissolve this alliance.

-- National Pride. A rising spirit of pride in the new nation also led to the War of 1812. Americans deeply resented British impressment of U.S. sailors. Moreover, many Americans believed it was the foreordained destiny of the nation to expand across the continent, and were prepared to take up arms to further this cause.

Thus, on June 18, 1812, Congress declared war on Great Britain. Support for the war was far from unanimous, however. Many residents of the New England states, represented by the Federalist Party in Washington, refused to support a war against Great Britain, for fear of harming their lucrative maritime trade. Furthermore, New Englanders worried about their shrinking power in the federal government if new states were added. In many respects, the United States was ill-prepared for war, but the lack of unity was the most visible handicap facing the nation.

** (2) United States Coinage Types during the War of 1812
Coinage was not produced in large quantities by the United States during the War of 1812. Of the ten coin denominations stipulated by the 1792 Mint Act, only three of them were struck with any consistency during the war: cents, half dollars, and half eagles. The other seven denominations were scarcely minted or not at all, because of the existence of foreign coin substitutes, bullion weight peculiarities, or other circumstances related to the war. What follows is a review of U.S. coinage types from 1812-1815, the years the War of 1812 was fought, and how their collectible values have progressed in modern times.

++ Half Cent. None issued. ++

Planchets for coining the half cent came to the U.S. from England, up until 1811, when worsening relations between the two nations halted shipments. No one really missed the half cent, as economists of the time questioned the existence of the lowly denomination, given their manufacturing difficulty and limited value in commercial transactions. The half cent would not be minted again until 1825.

++ Large Cent. Classic Head, 1812-1814. ++

England also provided planchets for the one cent coin, and like the half cent, deliveries ceased prior to and during the War of 1812. Cent production continued, but in smaller quantities. By 1814, the planchet supply was exhausted. In September 1815, about nine months after the close of hostilities, planchet shipments resumed, but this did not allow the Mint enough time to issue cents dated 1815. Thus, 1815 is the only year since the U.S. Mint began regular coinage in 1793 that the one cent denomination was not struck.

There are no exceptional one cent rarities from the War of 1812, so the 1813 was selected to represent the denomination in this analysis.

1813 Classic Head Large Cent
Values in Year
1950…..Good:$4.00….. F:$10.00…..XF:$15.00
1975…..Good:$27.50…..F:$80.00...XF:$300
2000…..Good:$60.00…..F:$250.…..XF:$1350
2003…..Good:$75.00…..F:$300.…..XF:$1500
2006…..Good:$85.00…..F:$300.…..XF:$2500

++ Half Disme. None issued. ++

The production of the half disme (the “dime” spelling did not come into use until 1837) was suspended after 1805. The Mint stopped coining half dismes because of the widespread use of the legal tender Mexican half real (pronounced “ree-all”), worth about six cents face value. Mint officials reasoned that since the public already had an acceptable alternative, further coining of half dismes was not a good use of their limited resources. Half dismes were minted again in 1829.

++ Disme. Capped Bust, 1814 Only. ++

There were no dismes minted after 1811 until the year 1814, when a whopping 421,500 came off the coining presses. The 1814 disme tally nearly exceeded disme production of the previous 18 years combined, since its inception in 1796. No dismes were struck again until 1820. As was the case with half dismes, dismes were not particularly in demand, as their role in commerce was being somewhat filled by Mexican coinage, so why the sudden surge in disme interest? Perhaps someday a researcher will find the answer.

The 1814 was the only disme issued during the War of 1812, but fortunately, many examples have survived. There are three varieties of the 1814 disme, all of which are fairly equal in value. The large date variety is examined here.

1814 Capped Bust Disme Large Date
Values in Year
1950…..Good:$2.00 …..MS60:$17.50…..MS65:$NA
1975…..Good:$27.50…..MS60:$700…..MS65:$NA
2000…..Good:$25.00…..MS60:$1000…..MS65:$10000
2003…..Good:$27.50…..MS60:$1000…..MS65:$10000
2006…..Good:$30.00…..MS60:$1000…..MS65:$12000

++ Quarter. Capped Bust, 1815 Only. ++

No quarters were minted between 1807 and 1818, with the sole exception of the year 1815, when 89,235 were struck. Similar to the other smaller silver coins, the need for the quarter was largely obviated by the circulation of the Mexican double real, worth exactly the same face value (the phrase “two bits”, meaning 25 cents, originated with the usage of the double real). Mint officials had no plans to produce any quarters in the summer of 1814, when a large shipment of Mexican silver dollars arrived from a New Orleans bank, accompanied by a letter requesting the silver be coined into quarter dollars and returned to the bank. After some hesitation, the Mint delivered more than 69,232 quarters in December 1815, followed by another 20,003 a month later. All bore the date of 1815.

For collectors hoping to add a quarter directly connected to the War of 1812 years, the 1815 issue is their only choice.

1815 Capped Bust Quarter
Values in Year
1950…..Good:$2.00 …..MS60:$35.00…..MS65:$NA
1975…..Good:$25.00…..MS60:$2500…..MS65:$NA
2000…..Good:$60.00…..MS60:$2000…..MS65:$3750
2003…..Good:$60.00…..MS60:$2000…..MS65:$3750
2006…..Good:$75.00…..MS60:$2500…..MS65:$5000

++ Half Dollar. Capped Bust, 1812-1815. ++

The half dollar was perhaps the most important coin issued by the Mint the first few decades of the 19th century, not just during the War of 1812. Indeed, it became the “coin of the realm”, and was produced continuously throughout the war, usually numbering more than a million pieces annually. A primary reason why the Mint saw fit to produce so many half dollars is because there were no foreign coin substitutes of equal face value to serve the public. Also, half dollars were instrumental in bank transfers. However, only 47,150 halves were struck in 1815, the lowest mintage of the entire Capped Bust half dollar series. The financial burden of paying off the war debt sent the U.S. economy reeling, greatly reducing the demand for coinage.

War of 1812 half dollars exist along the full range of the rarity spectrum. Included in this analysis is a common date (1814), a semi-key (1814, 4 over 3), and a couple of key dates (1812, 2 over 1 large 8 and 1815, 5 over 2).

1812, 2 over 1 large 8 Capped Bust Half Dollar
Values in Year
1950…..Good:$NA…..XF:$NA…..AU:$NA
1975…..Good:$NA…..XF:$NA…..AU:$NA
2000…..Good:$1600…..XF:$10000…..AU:$NA
2003…..Good:$1600…..XF:$11000…..AU:$17500
2006…..Good:$2000…..XF:$15000…..AU:$25000

1814 Capped Bust Half Dollar
Values in Year
1950…..Good:$0.75…..MS60:$6.50…..MS63:$NA
1975…..Good:$20.00…..MS60:$425…..MS63:$NA
2000…..Good:$35.00…..MS60:$1000…..MS63:$3250
2003…..Good:$45.00…..MS60:$1100…..MS63:$3250
2006…..Good:$65.00…..MS60:$2000…..MS63:$4000

1814, 4 over 3 Capped Bust Half Dollar
Values in Year
1950…..Good:$2.00…..MS60:$15.00…..MS63:$NA
1975…..Good:$22.50…..MS60:$425…..MS63:$NA
2000…..Good:$50.00…..MS60:$2000…..MS63:$5250
2003…..Good:$50.00…..MS60:$2000…..MS63:$5250
2006…..Good:$100…..MS60:$2750…..MS63:$6000

1815, 5 over 2 Capped Bust Half Dollar
Values in Year
1950…..Good:$9.00…..MS60:$65.00…..MS63:NA
1975…..Good:$125…..MS60:$2250…..MS63:NA
2000…..Good:$600…..MS60:$10000…..MS63:$25000
2003…..Good:$750…..MS60:$10000…..MS63:$25000
2006…..Good:$1250…..MS60:$15000…..MS63:$35000

++ Silver Dollar. None issued. ++

Silver dollar coinage was discontinued in 1804, and did not resume until 1836. The silver dollar circulated in the United States alongside the Spanish pillar dollar (also called the Pieces of Eight) for a short while, until it was observed by entrepreneurs that the U.S. dollar could be exchanged at par with the pillar dollar in the West Indies. This was a profitable scenario, for the U.S. dollar weighed less and contained a lower percentage of silver compared to the pillar dollar. Traders deposited their pillar dollars at the Philadelphia Mint, where they were re-coined for them into a larger number of U.S. silver dollars. The new silver dollars were exported overseas, where the cycle repeated itself. Taking note of this abuse, the U.S. suspended the silver dollar in 1804.

++ Quarter Eagle. None Issued. ++

The 1792 Mint Act set the silver/gold ratio in the United States at 15:1, much in line with the European markets. In 1803, France adjusted the silver-to-gold ratio to 15.5:1, making it profitable to export American gold coins to France for melting. Because so many gold coins left the country as soon as they exited the Mint, U.S. gold coinage was greatly curtailed throughout the earliest decades of the 19th century. Quarter eagle production ceased after the one year issuance of the Capped Draped Bust type in 1808. U.S. gold coin exportation intensified during the War of 1812, when the silver/gold ratio in Europe was elevated to more than 16:1. Quarter eagle production resumed on a small scale in 1821, by which time the uncertainty of war and economic turmoil had subsided.

++ Half Eagle. Draped Bust, 1812. Capped Head, 1813-1815. ++

The half eagle was the only U.S. gold coin struck during the War of 1812. Some demand existed from banks seeking half eagles to hold in reserve and to make international payments. About 170,000 “fives” were coined during those years, a considerable sum indeed by comparison to its contemporary coinage. Of that total, only a tiny fraction, perhaps 1% or so, survives to this day because of heavy melting losses influenced by the same European bi-metallic ratios that spelled doom for so many U.S. gold coins.

Representing the half eagles in our War of 1812 coinage study are a relatively common date, the 1812 Draped Bust, and an exceedingly rare specimen, the 1815 Capped Head.

1812 Draped Bust Half Eagle
Values in Year
1950…..Fine:$27.50…..MS60:$50.00…..MS63:$NA
1975…..Fine:$625…..MS60:$2250…..MS63:$NA
2000…..Fine:$1300…..MS60:$5250…..MS63:$12500
2003…..Fine:$2000…..MS60:$7500…..MS63:$17500
2006…..Fine:$3000…..MS60:$15000…..MS63:$25000

1815 Capped Head Half Eagle
Values in Year
1950…..Fine:$NA…..XF:$NA…..MS60:$NA
1975…..Fine:$NA…..XF:$NA…..MS60:$NA
2000…..Fine:$NA…..XF:$45000…..MS60:$160000
2003…..Fine:$NA…..XF:$75000…..MS60:$160000
2006…..Fine:$50000…..XF:$100000…..MS60:$160000

++ Eagle. None Issued. ++

The ten dollar gold eagle was the largest United States coin denomination mandated by the 1792 Mint Act. More than 130,000 eagles were struck from 1795 to 1804, but most of them eventually perished in the melting pot. None were produced again until 1838. It is a safe assumption that even had gold eagles existed in abundant quantities, few combatants in the War of 1812 would have carried any of the coins, for ten dollars represented a princely sum in early 19th century America and was not typical pocket change for a battlefield soldier or midshipman. When gold eagle production restarted in 1838, it was characterized by a lighter coin of less gold purity, a move designed to frustrate bullion profiteers.

As wartime costs mounted, much of what little coinage there was nearly disappeared from view as specie (i.e. silver and gold coins) became tightly held. Banks suspended specie payments in 1814, because the supply of bank notes being issued to finance the war increased faster than the volume of specie reserves. Confidence in banks and the economy were shaken badly, but the situation improved when Congress chartered the Second Bank of the United States in 1816. The Second Bank helped stabilize the nation’s financial system, and by early 1817, banks resumed specie redemption of their paper notes.

** (3) The Americans Fight the British Again
The United States was not ready to take on the British Empire in 1812. As mentioned already, the country was badly divided. What’s worse, army and state militias numbered only about 7000 men at the outset of the war, most of them poorly equipped and trained. The navy’s dozen ships seemed no match to the 800 warships of the British Royal Navy. In retrospect, the U.S. faced dim prospects of fighting a successful war.

-- The Canadian Front: The first major fighting of the War of 1812 was the American attempt to invade British Canada in the summer of 1812. The incursion was not only repelled, but the U.S. actually ceded ground, loosing Detroit to a combined force of Redcoats and Native American warriors. The following year, the Americans reclaimed the lost territory when Captain Oliver H. Perry surprised the British on Lake Erie. “We have met the enemy and they are ours”, wrote Perry, remembered to this very day as one of the proudest moments in all of U.S. naval tradition. The loss forced the British to abandon Detroit, and the Americans pursued them into Canada. At the Thames River, the U.S. defeated the British and their Indian allies. In the battle, Tecumseh was killed, and with his death, his confederation of Native American tribes disintegrated. Throughout the remainder of the war, the Canadian front was fought to a stalemate.

-- The British Burn Washington: By the summer of 1814, British landing parties were ravaging towns along the Atlantic coastline. In August, 4000 Redcoats marched on Washington D.C., setting fire to the U.S. Capitol building, the White House, and other government facilities. In a serious blow to national pride, President Madison was compelled to flee the city. With little time to evacuate, the President’s wife, Dolley, secured the Gilbert Stuart portrait of George Washington, lest it fall into enemy hands. As the flames intensified, a rainstorm struck the city and dowsed the inferno, preserving most of the buildings from total ruin.

-- The Defense of Baltimore and the Star Spangled Banner: After sacking Washington, the British next targeted Baltimore. No conquest of the city was possible without first vanquishing Fort McHenry, which guarded the entrance to Baltimore’s harbor. The troops manning the fortress unfurled a giant 30’ x 42’ American flag, visible for miles. On the morning of September 13, 1814, British warships unleashed a ferocious bombardment of Fort McHenry. The shelling continued all day and into night. It so happened that an American lawyer named Francis Scott Key observed the battle from afar. As the evening wore on, the red glare of rockets lit the darkness, proving the U.S. flag was still flying. A few hours after midnight, the bombing stopped, followed by silence. At the first glimmer of dawn’s early light, Key was thrilled to see the great star spangled banner blowing in the breeze… the British had given up and were heading back to sea. Inspired by this dramatic outcome, Key scribbled some poetry on the back of an envelope, words that would someday become the U.S. national anthem.

-- The Battle of New Orleans: The British high command decided the capture of New Orleans would help tilt the outcome of the war in its favor. With this in mind, a force of 10,000 troops was dispatched from Jamaica. American general Andrew Jackson hastily assembled an odd assortment of 5400 men, composed of woodsmen, pirates, sailors, “free men of color”, and a few regulars. Jackson set up a defensive position outside New Orleans, shielding his army behind a water trench and stacked cotton bales. On January 8, 1815, General Edward Pakenham led the British charge against the American stronghold. Waiting patiently, Jackson’s men held their fire until the last possible second, mowing down the first line of Redcoats. Wave after wave met the same bloody fate. By the time the British retreated, Pakenham was dead, and about 2000 of his men were killed or wounded. American casualties were minimal. The Battle of New Orleans was the largest engagement of the War of 1812, and was won decisively by the United States.

Peace talks between the warring nations began in August 1814 at Ghent in Belgium. Negotiations were fought to a draw, somewhat mimicking combat results. Language in the treaty primarily called for a cease of hostilities. The Treaty of Ghent was signed on December 24, 1814, but did not reach the United States in time to prevent the Battle of New Orleans.

** (4) The United States Emerges a Stronger Nation
According to the US Department of Veteran Affairs, a total 286,730 Americans served in the War of 1812, of which 2260 were killed in action, and 4505 wounded. Despite the losses, the U.S. emerged from the War of 1812 a stronger nation, in a number of ways:

-- Stimulated Growth of U.S. Domestic Industry: The pre-war embargoes and British naval blockades forced American manufacturers to begin making goods of the type formally imported from Europe. Factories thrived, and interstate commerce became a large business.

-- Disputes Settled Peaceably: The Treaty of Ghent did not directly resolve any disputes between the United States and Britain, but did provide the framework for negotiated settlements later. Within a few short years, important agreements were reached on maritime rights, international trade, and Canadian border policies.

-- Unified the Country: Banding together to hold off a major world military power, the American people emerged from the War of 1812 with a much stronger sense of unity. The war’s outcome also sealed the doom of the anti-war Federalist Party, leaving the Democratic-Republicans (the forerunner of today’s Democrats) as the only influential political party in America. So unified was the country, the period 1817-1825 came to be called the “Era of Good Feelings”.

The time following the War of 1812 was like no other in the history of the United States. Finally done with European entanglements, Americans vigorously accepted the challenges of opening new frontiers to the west. Patriotism abounded, leaving political strife mostly behind. Technological innovations and factories brought jobs to many in the northeast, and cotton gave rise to southern prosperity. For a short while, the American people were unified in a sense of national purpose, but as different sections of the country took on competing social visions, the bonds holding the country together weakened with the passage of time. Disagreements led to rancorous debate, which tragically, spawned a civil war of devastating proportions in the 1860’s.

** (5) Coins from the War of 1812 and Today’s Collectors
The coins included in the value trend analysis presented in Section 3 are a good representation of coinage produced during the War of 1812 era. All of them have advanced some in recent years, a few spectacularly so, as the coin market in general has been hot. Over the long haul, no one should expect to see this torrid pace continue. When long range performance is combined with what has happened in the last few years, we get a better understanding of true esteem held by today’s collectors for these coins. Here is how we rank the coins in our War of 1812 survey, with the coins most likely to enjoy future appreciation listed at top:

1812 half eagle
1814 half dollar
1815 half dollar
1814 half dollar 4 over 3
1813 cent
1812 half dollar 2 over 1
1815 quarter
1815 half eagle
1814 disme

Coin collectors hoping to obtain artifacts from the War of 1812 that also have some upside potential are advised to concentrate their purchases to the coins at the top of the list. As always, a good rule of thumb is to obtain the best properly graded condition affordable.

Whether your desire is to hold your War of 1812 coins as if they were commodities and hold until profit objectives are met, or if you intend to pass the coins on to your heirs, always remember the connection your coins have to a unique time in American history. The War of 1812 was a very perilous event for the United States; had it not been for a propitious rainstorm hitting Washington DC on August 24, 1814, or for a handful of stubborn patriots defending Fort McHenry a few days later, who knows, America may well have been reclaimed as a British colony. Had history taken another path, one just as easily traveled, the War of 1812 coins might have been the final coins ever minted by a short-lived, long ago forgotten nation called the United States of America.

Author Daniel J. Goevert is the webmaster of US Coin Values Advisor (http://www.us-coin-values-advisor.com/index.html), a site which explores the intersection of American history with the evolution of the US coinage system, beginning with colonial times. The site also includes detailed coin collecting advice.