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 U.S. during those wartime years, how coinage was affected
by the war, and to assess modern day collector interest in coins from that long
ago era.
Napoleon of France began his quest for control of
Europe in 1803. Within a span of four years, much of his ambition was fulfilled:
only Great Britain and Russia remained in his sights.
A War of 1812 satire on Anglo-American and
Franco-American relations. England's "lesson" is about the seriousness of
American determination to maintain freedom on the high seas, while France is
warned of Yankee firmness on matters of "Retribution" and "Respect."
The biggest challenge facing Napoleon was protecting his supply chain on the
high seas, where Great Britain held a major advantage. Much of France’s imports
came from the United States, a fact which had not escaped the notice of the
British Parliament.
In 1807, British lawmakers adopted a series of measures
called Orders in Council, which sought to prohibit American ships from entering
any port under Napoleon’s control. In retaliation, the French dictator decreed
that any vessel doing business with Britain would be confiscated by his forces.
American merchants protested, arguing that the principle of freedom of the seas
gave them the right to trade with anyone their choosing, and responded by
running naval blockades of both nations.
The practice of blockade running naturally put the U.S. at odds with Britain and
France, but the relationship between the Americans and British in particular
soured dramatically following the Chesapeake incident. In the summer of 1807,
the commander of the British warship HMS Leopard demanded to board the American
frigate USS Chesapeake to search for British navy deserters. When the demand was
denied, the Leopard opened fire, killing three and wounding 18 aboard the
Chesapeake. Four alleged deserters were then seized, or impressed, and taken
away with the Leopard. When news of this outrage reached Washington, D.C., many
angry Americans demanded a forceful response. This was not the first time the
British had impressed American seamen into their navy, but it was certainly the
most violent episode to date.
The Embargo Act of 1807 was very unpopular to
Americans who made their living through shipping, most of whom lived in the
northeastern part of the county. This "O-Grab-Me" cartoon (embargo spelled
backwards) expressed their disdain for the Act.
Public domain image.
Seeking to avoid war, President Thomas Jefferson urged Congress to pass the
Embargo Act of 1807, which prohibited American ships from trading with any
foreign nation. In effect, the United States temporarily abandoned the principle
of freedom of the seas in the hopes of preventing war.
Unfortunately, American
businesses suffered greatly, and eventually pressured Congress to repeal the
Embargo Act on March 1, 1809, three days prior to Jefferson leaving office. The
problem of easing international tensions while retaining American rights fell to
his successor, James Madison.
This declaration of war document against Great
Britain, passed by the 12th U.S. Congress and signed by President James Madison, dated June 18, 1812,
officially began the
conflict later named the War of 1812.
The Madison administration’s diplomatic attempts, which involved embargoes and
incentives, actually worsened matters between Britain and the United States. The
British, however, suffered a severe financial downturn during the winter of
1811-12, following a major grain crop failure.
Parliament rescinded the Orders
in Council on June 16,1812, with the expectation that resumed American trade
would help lift Britain’s economy. At long last, U.S. demands for respect on the
high seas had been met. Surely, now, there would be no war between the two
countries, or would there?
The British had given in to America’s wishes, but because there were no trans-Atlantic cables or telephones in those days, news of Parliament’s actions
did not quickly reach Washington, D.C. Thus, on June 18, 1812, two days after
the British withdrew trade restrictions on America, the U.S. Congress declared war on
Great Britain.
Historians mostly agree that the War of 1812 was
fought primarily over freedom of the seas and the impressment of American
seamen. But there were other factors driving America’s decision to take on the
British for a second time:
Desire for New Territories Pioneer farmers living in what was then the
northwestern part of the U.S. were looking for new farmlands, but were not eager
to settle the treeless prairies to the west. Rather, the rich, timbered regions
of southern Canada were more attractive.
The leader of the congressional "War Hawks" was
Henry Clay of Kentucky, who became Speaker of the House in 1811 at age 34.
Clay served in Washington until his death in 1852.
Public domain image.
Further 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.
Voters in these
hinterland areas reasoned that a successful military campaign against the
Redcoats might result in the annexation of portions of Canada and Florida, and
thus sent “War Hawk” representatives to Washington to promote their desires.
Native American Relations As frontiersmen advanced the sphere of American
influence westward, indigenous peoples fought back to preserve their ancestral
lands. Encouraged by British agents operating out of Canada, a confederation of
Indian tribes, led by a Shawnee chief named Tecumseh, began offering organized
resistance. Alarmed westerners demanded retaliation against British Canada to
forever dissolve this troublesome 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 sailors at sea and
foreign insults hurled at the United States flag. Moreover, a substantial
portion of the American population believed it was the foreordained destiny of
the nation to expand its borders to all extremities of the continent, and were
prepared to take up arms to further this cause.
Support for the war was far from unanimous, however. Many residents of the New
England states, largely 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. New territory would eventually lead
to new states. Whenever a new state entered the Union, their political clout was
diminished. In many respects, the United States was ill-prepared for war, but
the lack of unity was the most visible handicap facing the nation
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, from the years 1950 to 2006.
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 (yes, even
200 years ago, a half cent couldn’t buy much). The half cent would not be minted
again until 1825, ten years after the normalization of trade following the war.
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.
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 not minted again until 1829.
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 uncover the motivation
behind the existence of the 1814 disme.
The 1814 was the only disme issued during the
War of 1812, but fortunately, many examples survive to this day. There are
three varieties of the 1814 disme, all of which are fairly equal in value.
The large date variety is examined here.
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.
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
the 1815:5 over 2).
The 1812 half dollar exists in three different
varieties. The total half dollar mintage for 1812 was 1,628,059.
A tiny fraction of these are the 2 over 1, large 8 variety, which is a key
date for this series.
There are several varieties of the 1814 half
dollar. In addition to the regular date, shown immediately below,
there is the 4 over 3 overdate, enlarged in the next table below. The
regular date is relatively common, while the 4 over 3 is less so.
The 1814 4 over 3 overdate variety is not
rare, but it is less common than most Capped Bust half dollars, and
qualifies in this study as a semi-key date. The 3 is well hidden under
the digit 4.
All 1815 half dollars are of the 5 over 2
overdate appearance. All the 1815 half dollars were struck from a
modified die left over from 1812. Of all the half dollars minted during the War of
1812, the 1815 is by far the rarest, and is a key date in the Capped Bust
series.
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, Mint Director Elias Boudinot suspended
coinage of the silver dollar in 1804, a move later affirmed by President Thomas
Jefferson.
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 long
subsided.
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 turbulent
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 was the final year for the Draped Bust
series. Though it may be a relatively common date for early half
eagles, it can still command thousands of dollars in lower grades.
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 with no end in sight, 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.
Collectors of today look at coinage from the War of 1812 with a somewhat mixed view. Some of the coins show steady growth over time, counterbalanced by a few that are just as likely to retreat in value over any given period. The value trend analysis is summarized in the
last section.
The United States was not ready to take on the
British Empire in 1812. As mentioned already, the country was badly divided. Most
northeastern states contemptuously decried what they called “Mr. Madison’s War”.
What’s worse, the military was in no position to confront anyone, let alone a
major military power. The 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 ever accomplishing all of its
pre-war objectives, but nevertheless, quickly launched into full combat mode.
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 United States actually ceded ground, loosing Detroit to a
combined force of Redcoats and Native American warriors led by the Indian chief Tecumseh.
The following year, the Americans reclaimed the lost territory when a freshly
constructed small naval fleet, under the command of Captain Oliver H. Perry,
surprised the British on Lake Erie. “We have met the enemy and they are ours”,
wrote Perry in a report to his superiors, remembered to this very day as one of
the proudest moments in all of United States naval tradition.
Marine view showing American fleet, under the command of Oliver Hazard Perry,
engaged in battle with the British on Lake Erie on September 10, 1813.
The loss forced the British to abandon Detroit, and the Americans pursued them into Canada. At
the Thames River, future U.S. President William H. Harrison 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 of 1812, the U.S./Canadian border was largely fought to a
stalemate.
Battle of the Thames and the death of Tecumseh,
by the Kentucky mounted volunteers led by Colonel Richard M. Johnson, Oct 5.
1813.
The British Burn Washington By the summer of 1814, British landing parties were
ravaging towns up and down the Atlantic coastline. In August, a force of some
4000 Redcoat regulars marched on Washington D.C. After casting aside feeble
resistance, the British set fire to the U.S. Capitol building, the White House,
and other government facilities.
Drawing shows the ruins of the U.S. Capitol
following British attempts to burn the building; includes fire damage to the
Senate and House wings, damaged colonnade in the House of Representatives shored
up with firewood to prevent its collapse, and the shell of the rotunda with the
facade and roof missing.
In a serious blow to national pride, President
Madison and other federal officials were compelled to flee to the safety of
countryside. With little time to evacuate, the President’s wife, Dolley,
instructed her aides to secure the famous Gilbert Stuart portrait of George
Washington, lest it fall into enemy hands. As the flames intensified and all
seemed lost on the American side, a torrential rainstorm struck the city and
dowsed the inferno, preserving most of the buildings from total ruin. Washington
was saved by Mother Nature.
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 were determined to hold off
the invaders, and to show their spirit, unfurled a giant 30’ x 42’ American
flag, visible for miles.
Francis Scott Key observes U.S. flag still flying
above Ft. McHenry, on the morning of Sept 14, 1814.
On the morning of September 13, 1814, British warships
unleashed a ferocious bombardment of Fort McHenry. The defenders held strong as
the shelling continued all day and into night.
It so happened that an American
lawyer named Francis Scott Key, temporarily detained behind the British fleet,
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 an anxious silence.
At the first
glimmer of dawn’s early light, Key was thrilled to see the great star spangled
banner gently blowing in the breeze… the British had given up their assault on
Baltimore and were heading back to sea. Inspired by this dramatic outcome, Key
quickly scribbled some poetry on the back of an envelope, words that would
someday become the United States national anthem.
The Battle of New Orleans The British high command decided the capture of the
port city of New Orleans would help tilt the outcome of the war in its favor.
With this in mind, a force of nearly 10,000 troops was dispatched from Jamaica
to attack New Orleans. 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.
Andrew Jackson and his ragtag band of Americans
repel the British at the Battle of New Orleans, Jan
Jackson set up a defensive position a few miles
outside New Orleans, shielding his army behind a newly dug 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 from the battlefield, Pakenham was dead, and about 2000 of his men
were killed or wounded. American killed numbered no more than a few dozen.
The
Battle of New Orleans was the largest engagement of the War of 1812, and was won
decisively by the United States. Andrew Jackson quickly became a national hero,
riding his fame all the way to the White House in 1828.
Peace talks between the warring nations began in August
1814 at Ghent in Belgium. Both sides sought territorial concessions, but in the
end, no land changed hands. Negotiations were fought to a draw, somewhat
mimicking combat results. Language in the treaty primarily called for a cease of
hostilities, and did not even mention impressment of American sailors or
freedom of the high seas. 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.
Ironically, the largest battle of the War of 1812 took place after hostilities
had officially ended!
According to the
U.S. 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. An unknown number, generally
estimated to be relatively high, succumbed to disease or died of other causes. British dead are unknown, since Great
Britain did not maintain casualty records from that conflict. Despite the
losses, the United States emerged from the War of 1812 a stronger nation, in a
number of important 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, most notably in the northeast, began
to thrive, 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, all stemming from the Ghent armistice. These agreements set the
foundation for a lasting friendship between the two nations, which has continued
to the present day.
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.
"America Guided by Wisdom", depicting Minerva,
America, Ceres, and Mercury allegorical representing prosperity and independence
after the US victory over Great Britain. Published in 1815.
Andrew Jackson’s clear victory at New Orleans punctuated the United
States’ strength and ability to defend its right to nationhood.
The war’s
outcome also sealed the doom of the Federalist Party. Their anti-war diatribe
was viewed by many as treasonous, causing membership in the party to evaporate
and left 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”. President James
Monroe won reelection in 1820 running virtually unopposed.
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 and
excitement abounded, leaving political strife mostly behind. Technological
innovations and factories brought jobs to many in the northeast, and
agriculture, particularly 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 developed differently and 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
The coins included in the value trend analysis
presented above 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:
*
Please note the 1815 half eagle is a special exception; because
it is a classic numismatic rarity, developing meaningful value
trends is tough because the coin is traded so infrequently. The
next time an 1815 half eagle hits the market, the trend
computations may change significantly.
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.
Do not be disappointed or surprised if your new purchase stagnates or actually
recedes in value in the near future. As with most markets, coin pricing moves in
cycles, with strong collector pressure pushing certain coins to increasingly
greater heights over long periods of time.
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 republic called the United States of America.
