Before we were known as the United States of America, Several generations of “Americans” lived before us. Beginning in 1620 when the pilgrims landed, there were a whole 156 years of numismatic history before our declaration of independence. What did they use for cash? – well just about everything bartering with the natives using currency like wampum, or glass beads were common. Trade between the different colonists, was varied and difficult to manage. Coinage from all countries were seen in circulation, as well as privately minted coins, almost any type of coin or token was welcomed as long as the token was made out of a precious metal either copper, silver, or gold. But one coin stood out amongst all the others, at the time this coin was considered to be a universal currency, china traders loved this coin and it had a big appeal in the colonies. This famed coin was officially called the “Spanish Milled Dollar”. It also has other names that you may recognize like; Pieces of eight , Eight Reale and pirate treasure. Also a few rhymes that you remember from your youth come directly from this coin. How many times have you gone to a high school football game and heard the cheerleaders chant “Two Bits, Four Bits, Six Bits a dollar, let’s all stand up and holler”. Or this oldy but goodie “A shave and a hair cut two bits”. The “Bit” part was a slang term put to the Spanish milled dollar when it was cut into pieces, it could be cut up to eight times. Each “bit” is worth 12 1/2 cents.

In the coinage act of 1792. The United States of America made the Spanish milled dollar our own, our dollar is the same fineness and weight of the Spanish milled dollar. Why ? – because it was the most accepted form of currency in the known world at that time. And if you had a choice you would want to mimic the most valuable and acceptable coin at the time. Americans used this coin well in to the 1800’s because of the US mint’s lack of ability to produce enough coins to supply the economy, as well as early us coins were being exported and melted down and re-coined into foreign currency. This finally came to an end in the mid 1800’s and our monetary system began to stabilize.

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