Events Leading Up to the War of 1812

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."  Image courtesy of Library of Congress.

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.  Image courtesy of National Archives.

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.

Causes of the Conflict

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.

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, from the years 1950 to 2006.

Half Cents
Large Cents
Half Dismes
Dismes
Quarters
Half Dollars
Silver Dollars
Quarter Eagles
Half Eagles
Eagles

Half Cents - 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 (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.

Large Cents - 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.

Date: 1813
Classic Head Large Cent
Mintage: 418,000
There are no exceptional one cent rarities from the War of 1812, so the 1813 was selected to represent the denomination in this analysis.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	F-12	XF-40
1950	4.00	10.00	15.00
1955	5.50	12.50	20.00
1960	10.00	22.50	75.00
1965	20.00	60.00	135
1970	25.00	70.00	175
1975	27.50	80.00	300
1980	35.00	110	550
1985	45.00	115	650
1990	45.00	200	1000
1995	60.00	275	1350
2000	60.00	250	1350
2003	75.00	300	1500
2006	85.00	300	2500

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	F-12	XF-40
1950	5.61	6.26	9.57
1980	3.47	3.93	6.00
1995	3.22	0.79	5.76
2000	5.98	3.09	10.82
2003	4.26	0.00	18.56

Half Dismes - 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 not minted again until 1829.

Dismes - 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 uncover the motivation behind the existence of the 1814 disme.

Date: 1814
Capped Bust Disme
Mintage: 421,500
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.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	MS-60	MS-65
1950	2.00	17.50	---
1955	3.50	25.00	---
1960	5.00	42.50	---
1965	12.00	115	---
1970	16.00	175	---
1975	27.50	700	---
1980	30.00	1500	---
1985	25.00	1250	---
1990	15.00	1200	---
1995	20.00	1200	9000
2000	25.00	1000	10000
2003	27.50	1000	10000
2006	30.00	1000	12000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-65
1950	4.95	7.49	---
1980	0.00	-1.55	---
1995	3.75	-1.64	2.65
2000	3.09	0.00	3.09
2003	2.94	0.00	6.27

Quarters - 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.

Date: 1815
Capped Bust Quarter
Mintage: 89,235
For collectors hoping to add a quarter directly connected to the War of 1812 years, the 1815 issue is their only choice.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	MS-60	MS-65
1950	2.00	35.00	---
1955	4.50	60.00	---
1960	9.00	150	---
1965	20.00	350	---
1970	20.00	550	---
1975	25.00	2500	---
1980	45.00	2750	---
1985	65.00	3000	---
1990	35.00	3000	---
1995	40.00	2250	---
2000	60.00	2000	3750
2003	60.00	2000	3750
2006	75.00	2500	5000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-65
1950	6.69	7.92	---
1980	1.98	-0.37	---
1995	5.88	0.96	---
2000	3.79	3.79	4.91
2003	7.72	7.72	10.06

Half Dollars - 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 the 1815:5 over 2).

Date: 1812 (2 over 1, large 8)
Capped Bust Half Dollar
Mintage: unknown
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.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	XF-40	AU-50
1950	---	---	---
1955	---	---	---
1960	---	---	---
1965	---	---	---
1970	---	---	---
1975	---	---	---
1980	---	---	---
1985	---	---	---
1990	1500	6250	---
1995	1600	11000	---
2000	1600	10000	---
2003	1600	11000	17500
2006	2000	15000	25000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	XF-40	AU-50
1950	---	---	---
1980	---	---	---
1995	2.05	2.86	---
2000	3.79	6.99	---
2003	7.72	10.89	12.62

Date: 1814
Capped Bust Half Dollar
Mintage: 1,039,075
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.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	MS-60	MS-63
1950	.75	6.50	---
1955	1.50	12.50	---
1960	3.25	27.50	---
1965	8.50	65.00	---
1970	10.00	125	---
1975	20.00	425	---
1980	20.00	525	---
1985	35.00	1000	---
1990	30.00	1250	3250
1995	30.00	900	2750
2000	35.00	1000	3250
2003	45.00	1100	3250
2006	65.00	2000	4000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-63
1950	8.29	10.77	---
1980	4.64	5.28	---
1995	7.28	7.53	3.46
2000	10.87	12.25	3.52
2003	13.04	22.05	7.17

Date: 1814 (4 over 3)

Capped Bust Half Dollar

Mintage: unknown

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.

Photo courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	MS-60	MS-63
1950	2.00	15.00	---
1955	3.00	25.00	---
1960	8.00	75.00	---
1965	14.00	125.00	---
1970	15.00	200	---
1975	22.50	425	---
1980	22.50	625	---
1985	42.50	1100	---
1990	50.00	1750	3500
1995	47.50	2000	4750
2000	50.00	2000	5250
2003	50.00	2000	5250
2006	100	2750	6000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-63
1950	7.24	9.75	---
1980	5.90	5.86	---
1995	7.00	2.94	2.16
2000	12.25	5.45	2.25
2003	25.99	11.20	4.55

Date: 1815 (5 over 2)
Capped Bust Half Dollar
Mintage: 47,150
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.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	G-4	MS-60	MS-63
1950	9.00	65.00	---
1955	15.00	100	---
1960	45.00	250	---
1965	80.00	600	---
1970	95.00	900	---
1975	125	2250	---
1980	250	3000	---
1985	700	4500	---
1990	700	15000	37500
1995	600	11000	25000
2000	600	10000	25000
2003	750	10000	25000
2006	1250	15000	35000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-63
1950	9.21	10.20	---
1980	6.39	6.39	---
1995	6.90	2.86	3.11
2000	13.01	6.99	5.77
2003	18.56	14.47	11.87

Silver Dollars - 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, Mint Director Elias Boudinot suspended coinage of the silver dollar in 1804, a move later affirmed by President Thomas Jefferson.

Quarter Eagles -  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 long subsided.

Half Eagles - 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 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.

Date: 1812
Draped Bust Half Eagle
Mintage: 58,087
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.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	F-12	MS-60	MS-63
1950	27.50	50.00	---
1955	47.50	75.00	---
1960	75.00	150	---
1965	350	575	---
1970	400	650	---
1975	625	2250	---
1980	750	4500	---
1985	1250	9000	---
1990	1000	5500	17500
1995	1200	5500	12500
2000	1300	5250	12500
2003	2000	7500	17500
2006	3000	15000	25000

Compounded Annual % Return Rate Computed from year indicated in left-most column to the year 2006:
Year	G-4	MS-60	MS-63
1950	8.74	10.72	---
1980	5.48	4.74	---
1995	8.69	9.55	6.50
2000	14.96	19.12	12.25
2003	14.47	25.99	12.62

Date: 1815
Capped Head Half Eagle
Mintage: 635
One of the classic American numismatic rarities is the 1815 half eagle.  Of the 635 original mintage, only 11 pieces are believed to exist today.

Photos courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.
Year	F-12	XF-40	MS-60
1950	---	---</