In 1873, the U.S. Trade Dollar was introduced to facilitate commerce in the Far East as the then favored silver coin in that trade was the old Mexican peso due to its high silver content. Congress authorized the minting of a new silver dollar containing more silver than was standard for the issue in order to compete against the Mexican coinage. Virtually, the entire mintage of 1873 Trade Dollars (except proofs) were shipped to China.

In 1876, a decrease in silver prices made the face value above the silver value, which led to millions of Trade Dollars suddenly showing up in California. On July 22, 1876, Congress removed the legal tender status on the coin. The Trade Dollar remains the only American silver coin to have lost its legal tender standing.

Learn more about Trade Dollars.