The Gold Standard: 233 Years of the U.S. Mint
This April marks 233 years since the establishment of the first U.S. Mint in 1792. In addition to coins, it manufactures Congressional medals and is responsible for safeguarding the nation's metallic reserves. The mint has been central to the development of the nation's financial system, reflecting both economic shifts and national identity over more than two centuries. They say money makes the world go ’round, and the mint has certainly been prominent throughout American history. Let’s open our pocketbooks (do people still carry those?) and cash in.
A New Nation of Currency
In early America, transactions were handled with both foreign and colonial currency. In fact, currency as we know it was vastly different. At times, colonists bartered using produce and livestock or used promissory notes and credit ledgers for monetary exchanges.
After the Revolutionary War, the Articles of Confederation were created as the first governing document to unite the 13 original colonies. Designed as a framework for cooperation among the states, they did include a provision allowing individual states to mint their own coins. This quickly caused issues because there was no central regulation or standardized exchange rates.
When the U.S. Constitution was finally ratified a few years later, the conversation about creating a national mint began in earnest. The first capital, Philadelphia, was promptly designated as the site of the first mint.
Coins Galore
The U.S. Mint was formally established under the Coinage Act of 1792. The act included specifications about the types of coins that would be produced, and by 1793, over 10,000 coins were in circulation.
President George Washington appointed inventor David Rittenhouse as the first director of the mint, which at the time was housed under the Department of State. Under Rittenhouse’s leadership, coins began being produced in 1793.
The first coins were made from precious metals like gold, silver, and copper, ensuring that they had inherent value that could be trusted both within and beyond U.S. borders. The earliest coins, including the famous half cent, were simple but efficient, facilitating commerce in an era when trade was still largely based on barter or foreign currency. The Harry S. Truman Presidential Library, a part of the National Archives system, holds a collection of historically significant coins from the first three presidents that were donated by Truman’s Treasury Secretary John Snyder. The coins below were all minted during John Adams’ presidency. You can see the now extinct half cent in the bottom right corner.
Introducing Paper
As the nation grew, so did the mint’s responsibilities. It Continued to expand its physical presence, with five new facilities by 1863 spanning from the East Coast all the way to San Francisco.
Facing financial ruin during the Civil War, the U.S. government, under Treasury Secretary Salmon P. Chase, began issuing paper money to fund the war effort. Chase, keen to boost his political career, featured his own portrait on the first greenback bill and included the phrase "In God We Trust."
While this new currency helped stabilize the economy, it was quickly targeted by counterfeiters, and by the war's end, one in three bills were fake. To combat this, President Lincoln established the Secret Service on April 14, 1865, not to protect the president, but chiefly to eliminate counterfeit money. By 1869, the Secret Service had arrested over 200 counterfeiters and opened 11 offices. Today, the rate of counterfeit money is significantly lower, with only one in 12,240 bills being fake.
Some of the earliest records of the Secret Service in the National Archives include cartes-de-visites of individuals arrested for counterfeiting in various states, with handwritten personal identification details and photographs taken by commercial photographers.
"Metals" of Honor
In the early 20th century, the mint began to also produce medals and other commemorative items. It became more than just a coin factory; it became a symbol of American achievement. In the 1930s, for example, the mint famously produced coins for China when they experienced a shortage of silver and copper alloys. The U.S. Mint’s ability to manufacture high-quality coins became internationally recognized, cementing its place as an economic leader.
One of the most significant responsibilities of the mint is the production of Congressional Gold Medals, which are approved by Congress and awarded to “individuals, groups, or institutions for their distinguished achievements and contributions.” From the foot soldiers of the 1965 voting rights marches to Mr. Arnold Palmer, the mint plays a key role for the recipients of this high honor.
A National Symbol
More than just a place where coins are struck, the mint continues to symbolize American resilience and identity. The mint continues to create commemorative medals and coins honoring special occasions, American heroes, and symbols of freedom. Just like the National Archives, they will also celebrate the 250th anniversary of the signing of the Declaration with commemorative coins and other items.
