1871-CC Eagle Carson City Coin of the Week 10/16/2011

1871-CC $10 Eagle the October 16, 2011 Carson City Coin of the Week



Millions of Coin Minted - But Very Few Were in Western Pockets.

During the 19th century, the United States minted gold coins in many different denominational values. The denominations authorized by Congress closely match those of European gold coins. Six gold coin denominations were given legal tender status and produced for general circulation by the United States including $1, $2.50, $3,$5, $10 and $20 coins. Other denominations, such as $4, $50 and $100 gold coins, never made it past the design and pattern stage.

Despite the millions of gold coins produced in these denominations at the Philadelphia, Charlotte, Dahlonega and New Orleans mints in the first half of the century, the western region of the country suffering from a dearth of small specie. The onset of the California gold rush in 1849 only exacerbated the problem. With tens of thousands of people migrating out west, the booming gold rush economy forced businesses and citizens to deal with the problem in other ways.


Americans Find a Way - Private vs Federal Coin Mints.

To deal with the lack of specie, entrepreneurial Americans took up some of the slack by producing privately minted gold coins. This was nothing new as privately minted coins had been produced on the eastern seaboard since early colonial times. During the period of the 19th century in question, most of the privately minted gold coins were being produced in and around San Francisco, where useable coinage was needed most. Other gold coins were minted in Utah and Oregon as well, though not in the numbers produced in California. Tokens and raw gold dust were also traded in replace of available coinage.

The problem became so persistent that gold coins were privately minted in ever smaller denominations. These smaller value gold coins are collectively known today as California Fractional Gold and were privately minted in 25c, 50c and $1 denominations. Over 570 different varieties are known to have been manufactured with atleast 35,000 examples still in existence today.



One can easily imagine that, without government regulation, a large number of these coins were being produced with less than the appropriate amount of gold in relation to stated face values. By the 1850's, the ever widening coinage problem was screaming for the government to bring federal controls, and adequate specie into the western region. Despite political opposition from competing states with existing branch mints, Congress floored a proposal to build a new coin mint in San Francisco.


A Federal Foothold is Established.

Prior to the San Francisco mint's authorization, the government established a foothold in the region by appointing Augustus Humbert, a watch maker by trade, as the official United States assayer for California gold. Humbert opened a U.S assay office in San Francisco with the congressional authority to buy gold and issue $50 U.S gold coins, as well as several denominations of ingots up to $10,000. Lacking the equipment to actually produce the coins, Humbert established a working relationship with one of the area's private coiners, Moffat & Company. Beginning in 1851, Moffat & Company produced a six sided,"quintuple eagle" affixed with Humbert's name as the official U.S. assayer. Backed by Humbert's authority, this private facility effectively served as a provisional U.S. mint until such time as a permanent mint could be authorized and constructed.



The much delayed San Francisco mint finally opened its doors for business in 1854. Despite the new coinage facility's production, the region's need for coins remained acute. Privately minted gold coinage continued and was not officially outlawed until the Coinage Act of 1864. Even so, private coiners produced coins for the next twenty years until Federal agents finally began to enforce the law in the mid 1880's.


The Comstock Strike Begets Yet Another Branch Mint.


Less than five years after the completion of the San Francisco mint, the fabulously rich Comstock strike brought another gold rush to the western region. The ensuing population explosion and booming commerce brought another round of problems to the government's doorstep.

By October of 1864, the three year old Territory of Nevada had been granted Statehood. Supported by the tremendous amount of wealth coming out of the ground, the new state's politicians' and business owners'voices could not be ignored. They wielded their newly found influence to lobby the government for a branch mint to be built in Carson City, to help solve security,transportation, logistical, cost and other problems brought on by the Big Bonanza.

Politicians and competing business factions whose noses had been bloodied over the San Francisco mint debate, were still smarting from their losing effort. When the suggestion of a new mint for Carson City was floated, they were primed and ready to go to battle. Even though the Carson City mint was ultimately completed in 1870, the mint's opponents artificially repressed the facility's business operations for most of its operational life.




Of the six gold coin denominations that were being produced by United States mints in 1870, the new Carson City mint was given authority to mint only three, the $5 Half Eagle, $10 Eagle and $20 Double Eagle. This $10 gold coin minted at the new branch mint in its second year of operation, the 1871-CC Eagle, is this week'sCarson City Coin of the Week and the subject of the balance of this article.

Despite the massive amount of gold ore production coming out of Comstock mines, just 12 miles from Carson City, the San Francisco mint, about 175 miles away and separated by the Sierra Nevada mountain range, produced many more gold, $10 eagles than did its Nevada cousin. The mintage comparison for 1871 is a good example. The Carson City mint produced 8,085, 1871-CC Eagles while the San Francisco mint stamped out 16,500, 1871-S Eagles.




From its first year of operation in 1870, through its final year of coin production business in1893, the Carson City mint produced $10 gold coins in nineteen separate years. Today, these nineteen different dates of $10 Eagles represent the key gold coin series of the three denominations minted at Carson City. When comparing the rarity and value of each individual year, the nineteen year series is frequently broken down into the coins produced from 1870 through 1879 and those eagles minted during the final nine years of production, beginning with 1880 and ending in 1893.


Rarity and Characteristics of the 1871-CC Eagle


-Original Mintage 8,085

-Remaining in All Grades - 110 to 115 or 1.4%


Despite this date's seemingly small number of remaining examples, the 1871-CC Eagle is the second most available of the ten dates of eagles from the 1870's era. Only the 1874-CC Eagle boasts more remaining examples from the period 1870 through 1879. Any further perception of the 1871-CC Eagle as a relatively common coin stops
there.

When compared with the known population of remaining Carson City eagles from the 1880's and 1890's, the 1871-CC Eagle is literally twice as rare as the rarest eagle of this later period, the 1882-CC Eagle. Furthermore, the extant population of 1871-CC Eagles is twenty five times more rare than the most common Carson City eagle, the 1891-CC $10 !

-Known Mint State Examples- 2 or 3

Like all other dates from the 1870's, the 1871-CC Eagle is exceptionally rare in mint state condition. Research shows a total of only three coins certified as uncirculated. One MS-60 and one MS-62 example have been certified by NGC, while only one MS-62 piece has been graded by PCGS.

Interestingly, the number of certified, mint state 1871-CC Eagles as reported by Douglas Winter in 2001, Rusty Goe in 2003 and by PCGS Coin Facts in 2011 has remained at just 3. During the same period, the population of Almost Uncirculated 1871-CC eagles has tripled from 12 examples ten years ago, to 36 certified AU examples today! Given the huge price premiums realized by moving up just one grade, there is no doubt that a material percentage of the 36 are resubmissions.

An interesting anomaly jumps out when researching the 1871-CC Eagle. NGC has certified nearly three times as many examples of this date than has PCGS. Of the 36, certified Almost Uncirculated examples of this date, only 4 are in PCGS holders. While this certification disparity is not all that uncommon among gold coins, your author does not have the background necessary to explain why this is the case. Perhaps, someone else will expound on this subject at a later date.

-Published Values

While NGC has certified a much greater number of 1871-CC Eagles, their published pricing at each grade range is slightly less than is stated by PCGS for coins of the same grades in their holders. Despite these differences, the following price ranges reflect the current published prices of both certification agencies. As is true for any Carson City date, high quality examples will always command a premium.

VG to F: $1,700 - $3,500

VF to EX: $4,000 - $13,000

AU-50 to AU-58 $15,000 - $35,750

MS-60 to MS-62 $$56,250 - $94,250


-Varieties

There are two varieties of 1871-CC Eagle. The primary difference between the two is found on the obverse as both varieties use the same 1-A reverse die from 1870.

One of the two obverse dies for the 1871-CC Eagle shows a straight and level date. This is the 1-A variety. The 2-A variety obverse die places the date lower and at a slight downward angle. While the 2-A variety appears to be the least common, I could not find any information indicating a premium was attached to this variety.

-Strike

References agree that the 1871-Eagle was relatively well struck. As Carson City eagles go, the strike is above average for the nineteen different years of eagle production. The eagle's neck feathers, on the reverse, will typically show some weakness as will the claws. Of the two sides, the reverse strike is typically better. Even so, the obverse strike is still considered better than average for Carson City eagles. Obverse weakness is usually found in Liberty's hair curls and ear.

-Luster & Eye Appeal

As the second oldest date in the Carson City series, it's very tough to locate an example of the 1871-CC Eagle with significant remaining luster. Given the coin's immediate passage into the commerce of the wild west, it's also very difficult to find an example with minimal abrasions, dings and gouges.

Experienced Carson City gold coin collectors understand that gauging the eye appeal of gold coins minted at Carson City is a unique process to itself. One cannot expect the few surviving coins from the wild west era to retain the kind of lustrous eye appeal often found among examples of gold coins from the much larger mintages of other mints, whose progeny passed their lives in considerably less, rough and tumble environments.


Famous Pedigrees

Any serious coin collector will tell you that the one thing most often missing when a coin is acquired is its individual history. Where has that coin been and who has owned it previously? Equally true is the fact that the more valuable the coin, the more interest there is in the coin's history and the larger the premium if a pedigree is involved.

If you doubt this statement, just try to buy any coin at its current, market price when that coin boasts the name "Eliasberg" somewhere on the holder's description. Owning such a coin is a point of pride and recognition among the members of the numismatic community, and is usually worth the premium.



One of the things that impresses this writer the most about the famous coin collectors of the past is their incredible level of patients and their self taught expertise. These people did not have the advantage of fast flowing data, express shipments of coins to view on a moment's notice nor volumes of information at their fingertips with the tap of a computer key. Very little comparison data had been compiled about grading, populations and all the other critical information we have at our fingertips today, and take for granted.

Despite their lacking the technical advantages we enjoy today, these astute collectors assembled some of the most revered coins known to numismatics while transacting at least 95% of their business by telephone, personal travel to auctions and private treaty sales and through the U.S. mails. They were the very definition of hands-on coin collectors.

Certainly, experienced coin dealers suported their efforts with their knowledge as well. Where else, but between the ears of experienced coin dealers, would a collector find the necessary collation of knowledge fifty, seventy five, or a hundred years ago? Before the later part of the twentieth century, numismatic publications with detailed information on extant coin populations and original mintages were just about non-existent.

One would certainly be able to read about coin in auction catalogs, but even then, the information was very generalized. Most catalogs provided only a grainy black and white image in support of the written description, though a few of the larger auction houses did include color photographs.

Even with the assistance of the coin dealer network, yesterday's coin collectors had no choice but to become masters of Knowledge Based Collecting. Most taught themselves this skill using a great deal of patients, endless comparisons, more patients, careful note taking, and of course, even more patients.

I, for one, hold these pillars of numismatic history in great esteem. To conclude my article about the 1871-CC Eagle, I will describe the 1871-CC Eagles owned by a few of these famous collectors.


The Norweb Collection: 1871-CC Eagle-XF-45,Uncertified




Liberty Emery Holden represented the first generation of a family whose coin collection would ultimately take on near-mythical qualities. The famous Norweb Coin Collection began with Liberty Holden's efforts in the late nineteenth century and would continue through five more generations until eventually sold, approximately
100 years later.

The early family members kept good records, though much has been lost. Later family collectors established other forms of record keeping which included their own grading system. Through the years, the family purchased coins at every grade level from near perfect Proof pieces all the way down to coins graded Good. This does not mean they were not selective. On the contrary, whether they purchased a G,VF, AU or Mint State example of a coin, you can bet the coin was in the top percent of the known population for that grade.

The 1871-CC Eagle owned by the Norweb family was purchased on December 10, 1935 from J.C. Morganthol, a well known coin dealer who would ultimately sell many pieces to the family. The coin was sold next, fifty-three years later in the March 24 and 25, 1988 Bowers and Merena Auction in New York. This sale took place about two years after PCGS had come into being as a certification company. A cursory scan through the auction catalog shows that the subject 1871-CC Eagle, and most likely none of the other coins, carried a PCGS certification. The description in the auction catalog read;

Rare 1871-CC Eagle

Lot 2200 1871-CC EF-45. A very scarce coin in all grades, and in EF grade quite rare. It is believed that no finer condition example exists.

In the front of the Bowers & Merena catalog, there were a few pages of tiny, color photographs of a few of the coins. However, most of the coins in the catalog were not pictured on these color pages, including the 1871-CC Eagle.

I was very fortunate to receive some valuable insight from Rusty Goe on the Norweb 1871-CC Eagle as he is intimately familiar with each of the Carson City eagles owned by the Norweb family. To provide a sense of the exceptional quality of the Norweb coin, Rusty explained that at the time of the Norweb auction in 1988, the Red Book published value of an 1871-CC Eagle in EF was $1,500. The published price of an AU graded 1871-CC Eagle was $2,300. The Norweb coin sold for $3,520!


The Norweb 1871-CC Eagle's sale price was 150% higher than the published price for an AU graded coin and 233% higher than pricing for an EF 45. Further, Rusty stated that he would not be surprised if the Norweb example of the 1871-CC Eagle would grade AU-55 today.


Eliasberg Collection: 1871-CC Eagle XF-45 Uncertified



Eliasberg! More than any other, the mere mention of this name when discussing numismatics, instantly resets everyone's expectations for quality and value. No other pedigree is so widely sought or is capable of creating such a price premium. Few would argue that the coins in the Eliasberg Collection were not among the finest known in their respective grades.

In this writer's opinion, the financial strength needed to assemble the Eliasberg collection is less impressive than the level of diligence this man applied to the task. There may never be a more profound example of self-taught, knowledge based coin collecting.

Louis Eliasberg Sr. is most widely known to the public as the only collector in history to build a complete collection of every U.S. coin, metal, denomination, date and mint mark. (excepting one or two coins which were not known to have existed until after his death).

For Carson City coin enthusiasts, Eliasberg's effort had a very
special finale. The last coin he needed to complete his collection was the famous, 1873-CC No-Arrows Dime, which he finally acquired from Sol Kaplan in 1950, for $4,000. Yes, this is the same coin that Rusty Goe gladly paid $891,250 for back in July of 2004.

Beginning his collections around 1940, Eliasberg made a huge leap forward in 1942 by purchasing the entire Clapp Coin Collection, which had been painstakingly assembled by two generations of the Clapp family, over a 50 year period. The Eliasberg collection was sold in several stages beginning in 1982 when the "United States Coin Collection" was put up for auction by Bowers and Ruddy.

Despite the collection's name, coin dealers and experienced numismatists knew the coins being sold were Eliasberg's. Even though this auction took place nearly four decades ago, this Eliasberg sale still ranks among the highest total dollar volume auctions of American coins ever...this despite the fact that the coins auctioned in 1982 were only his gold coins. The balance of his huge collection was auctioned in 1996 and 1997 by Bowers and Merena.

Eliasberg purchased his 1871-CC $10 Eagle in 1944 from Hans Schulman, a prominent, Jewish coin dealer who had emigrated from Holland. The coin remained in Eliasberg's collection until his death and was eventually sold along with all of his other gold coins in a Bowers and Merena auction in 1982. His uncertified, 1871-CC Eagle was listed in the 1982 auction catalog as an estimated XF-45.The final hammer price in 1982 for the Eliasberg 1871-CC Eagle was$2,420.


Harry W. Bass Jr. Collection:
1871-CC Eagles XF-45 Raw and AU-50 PCGS


The Harry W. Bass Jr. Collection began in the mid 1960's. Bass eventually put together a huge collection totaling more than 6,000 coins, most were gold. Scholars today refer to the Bass collection as perhaps the finest overall condition coin collection of all time. His collection is also revered as the most complete die variety gold
coin collection ever assembled, a good number of which had been purchased from the Eliasberg sale. It would require a major essay to adequately describe Harry W. Bass, Jr.'s influence on the world of numismatics. He was a incredibly generous benefactor to numismatic organizations and was one of the first major collectors to heavily involve the use of the World Wide Web Internet.

After his passing, the bulk of his coin collection was sold by Bowers and Ruddy in four separate sales beginning in 1999. However, a large portion of his pre-1834 gold coin collection, which best represented his studies in the field of gold coin die varieties, was set aside and preserved for educational purposes in the Harry W. Bass Jr.Research Foundation.

The Harry W. Bass Jr. Collection, Bowers and Ruddy sale catalogs can be viewed on the Harry W. Bass Jr. Research foundation web site. These catalogs reveal that he owned two examples of the 1871-CC Eagle. One of these was uncertified and carried an estimated grade of EF-45 and had originally been purchased in 1971.

This coin was sold in the 1999 Bowers and Ruddy auction for $6,612.

The catalog described the coin as follows;

(Lot)1526 1871-CC EF-45.This is another wonderful specimen of the scarce and highly prized 1871-CC $10. Pleasing surfaces with traces of lustre remaining. Light golden lustre.Some evidence of a light cleaning long ago.(note their spelling of "luster")

The second 1871-CC Eagle in the Bass Collection was certified AU-50 by PCGS. This coin had been purchased in 1968 from Abe Kosoff's auction of the Shuford Collection.

The coin was sold in the 1999,Bowers and Ruddy auction for a price of $10,350.

The catalog described the coins as follows;

(Lot)1525 1871-CC AU-50 (PCGS)Light yellow gold with moderate abrasions, the surfaces slightly subdued as a result. Light greenish gold with very faint traces of orange toning. Traces of mint lustre are visible, particularly on the reverse. The 1870-CC is one of the scarcest of all Carson City issues, combining as it does an early date and the situation that most if not all pieces were distributed regionally rather than internationally. Of the surviving examples, nearly all are in grades lower than the present coin. In fact, the Eliasberg specimen was EF-40, itself a notable piece, but not a match for the Bass coin offered here.
PCGS Population:4 finer(AU-58 finest.

The Bowers and Merena catalog photos of both coins, in black and white, can be viewed on the Harry W. Bass Jr. Research Foundation web site by pasting the following address on your browser bar;

:http://www.harrybassfoundation.org/basscatalogs/BASSSALE2/b2-2-m.htm


The Battle Born Collection: 1871-CC Eagle MS-62 NGC



Unlike the famous collections previously described, the Battle Born Collection includes only coins from the Carson City mint. Another difference is that the Battle Born collector has chosen to remain quietly anonymous. Despite his public silence, the individual coins in his collection shout their prominence from the highest mountain tops.

The Battle Born Collection is, far and away, the number one Carson City coin collection in the world. Furthermore, the Battle Born Collection is the only complete, 111 piece, Carson City coin collection in the world, a feat duplicated only once before, when Louis Eliasberg purchased the final piece, the 1873-CC No Arrows Dime in 1950.

Despite their similarities, the Battle Born Collection is of much finer overall quality than Eliasberg's set of 111 CC coins. From the beginning, the Battle Born collector sought only the finest examples of each date. Even if one cherry picked the very finest Carson City minted coins from within Norweb, Eliasberg and Bass Collections the combined set would pale in comparison to the Battle Born coins.

The individual coins of the Battle Born Collection are either the finest known certified examples in existence of each date and denomination, or at the very least, they are within the top three. As one might expect, some of these trophy coins carry the pedigrees of the other famous collectors described in this article.

The facts described in the following two paragraphs about the Battle Born 1871-CC Eagle were provided by Rusty Goe;

The 1871-CC Eagle in the Battle Born Collection is likely one of the high denomination gold coins which were originally shipped off to Europe during the 19th century. The coin arrived back in the United States in the early 1990's. It came to the attention of the numismatic census when it was graded a whopping MS-62 by NGC. It was then as it remains today...the finest known example of the 1871-CC Eagle.

The coin first traded hands in 1995 at a Heritage-ANA auction at a price of $44,000. It appeared next in July, 2002 at a Bowers and Merena auction as part of the Henry S. Lang Carson City gold coin collection. The hammer price of $66,125 represented a 50% price increase from the prior sale just 7 years before. The following month, the Battle Born collector purchased the coin for approximately $70,000.

A portion of description of this coin from the 1995 Heritage sale follows;

NGC 1871-CC MS 62 ...At the MS-62 level,this is easily the finest coin known.

...The surfaces of this piece are quite extraordinary. The striking details are well brought up on both sides, and in fact, show no weakness in any of the usual areas. The fields show the usual combination of prooflikeness and mint frost that is common to high grade examples of this issue. The most distinguishing marks for pedigree purposes are both located on the obverse. One is a curved scratch in the left obverse field out from star 3. The other runs along the jawline of Liberty, beginning just below the ear.


Obviously, there are dozens of famous collectors and world-class collections which were not mentioned in this article. Stacks, Green, Winter, Garrett, Elrod, Reed and Carson City coin collectors Harold Budd and Norman Biltz to name a few. Their contributions to numismatics and the incredible coins they assembled warrant narrative beyond the scope of this article.

Trailing miles back in the hazy distance, the fledgling Rian's Bequest Collection is slowly bumping along adding coins when and where possible. With a budget diametrically opposite of banker, Louis Eliasberg's, the Rian's Bequest Collection is nonetheless proud to own a very nice AU-50 example of this week's subject,the 1871-CC Eagle.

While certainly not on par with the great coins described above, the Rian's Bequest Collection can at least lay claim to the fact that every one of the Carson City coins in its cabinet were assembled within the diligent standards of knowledge based collecting, as mentored by my friend, Rusty Goe.

The coin exudes a soft yellow-gold color which is nicely highlighted by the remaining luster, found on 25% to 30% of the coin's surface. Like other Carson City eagles minted this same year, this piece shows good definition. What separates this coin from most other similarly graded examples is its relative lack of noticeable abrasions.

This factor, together with the remaining luster, yields excellent eye appeal and an exceptionally clean piece for an AU-50 graded Carson City eagle. The Rian's Bequest Collection purchased the coin from Southgate Coins in November of 2009 for a price of $11,000.




I must apologize for the length of this Coin of the Week article. There was simply so much of interest about this date that it was difficult to quit writing! Be that as it may, I hope you've gotten a thing or two from this lengthy narrative about the 1871-CC Eagle, the October 16, 2011 Carson City Coin of the Week...and the final
COTW posting of the series for this author.


Belay Off

Belay, One word simply describes this Coin of the Week article..... Masterpiece!!!!!!!!! This article is super informative. A beautiful coin in your collection also. WOW, Loosechange is totally speechless.

Great job and a Greater COWboy!!!



Loosechange

I got carried away...but thanks anyway Loosechange

Belay Off

Belay Off,

You made an astute connection between a lack of coins in the western states and the establishment of mints in this region. And, of course, as far as the Carson City Mint is concerned, it all comes back to the discovery of the Comstock Lode.

Your section on pedigree information and famous collectors adds a new dimension to the study of the Carson City Mint and its coins. The collectors who get the most out their collecting experiences are the ones who study the lives of the prominent numismatists who have blazed trails for the rest of us to follow. A person who builds a memorable coin collection, which will be enshrined in the annals of numismatic history, is like a famous composer who writes everlasting songs, or an athlete who sets records. These are hall-of-fame-type people who inspire those who come after them.

You truly brought your work in this COTW project to a symphonic peak and finished with a grand finale.

Bravo!

Rusty

Rusty,

While I may have hit on one of the important issues of the time, I had no choice but to abbreviate a half dozen others., especially when discussing the great collectors.

I frequently found myself spending much more time than I had intended when reading about these people and chasing down information on their specific Carson City coins. Hours literally sailed by without typing a single paragraph!

I know I speak for all of the COWBOYS when I say how much it has meant to us to have had your constant support and numismatic guidance. You've continually inspired us with your insights to this era and have willingly shared your decades of experience and highly specialized, Carson City Coin knowledge. Could any coin club member possibly ask for more!

Looking back on the last two years of the COTW program, there is no doubt in my mind that the end result of knowledge gained and knowledge shared, not only exceeded our expectations, but has ultimately stayed true to the C4OA motto .

Belay Off

Hi Belay

I am speechless!!! Again, you've raised the bar...this COW post is worthy of a Curry's Chronicle issue and more. Honestly, I can't say that I've read a more complete, vibrant, interesting and fact filled article in any major numismatic publication with their pro writers and all....Coin World would love this article!

It's a shame that more members don't visit this C4OA blog-site..yes, many of our members who don't "tune-in" here do read the Chronicle, and that's great, but they have no idea what they're missing out on here!

I love all the pictures (especially your fab example!) and I particularly love the pics of the fractional gold pieces that played such a vital role in the history of the early American West.

I surely don't mind you "getting carried away" as you put it...not when the post is as great as this one!

Wow Belay.. Sincerely, my hat's off to you.

the drummer