First US silver dollar coin -- was Spanish?

Known as a Piece Of Eight -- mainly struck in Mexico -- it was the most common coin in circulation among the thirteen colonies prior to, and even after, independence.

The eight real coin, two of which are shown above, often appears in American coin collections. It is highly regarded as an important part of the colonial American economy.

The coin was accepted at the value of one dollar.

Also known as the Spanish Milled Dollar, it was often the unit of account for a substantial amount of colonial currency.

The first type of silver dollar coin struck by the US Mint, shown above on the right, was similar in size and weight to the contemporary Spanish coin.

The Not So Round Ones Came First

This was due to their crude method of manufacture. Bars of high grade silver were extruded at the mint. Pieces of the proper weight were sliced from the bars, then struck by hand, one at a time, using a hammer, a punch, and an anvil. Hand cut dies were embedded in the anvil and the punch.

To strike the coin, the coiner placed a pre-heated piece of silver upon the anvil, positioned the punch atop the silver. A heavy hammer blow drove the punch into the silver, and the silver into the anvil, impressing images into both sides of the freshly minted coin.

Roundness was not an issue – more important was weight and purity of the metal.

Then, The Round Ones – Spanish Milled Dollars

As small change was scarce in the colonies, these coins were often cut into pieces as small as one eighth. These were known as bits – so 2 bits was a quarter dollar, 4 bits equaled fifty cents.

Interestingly, the stock exchange in New York priced shares in eighths of a dollar, based on the colonial practice of cutting the Spanish silver dollar coin into pieces.

Legal Tender