By Doug Winter – RareGoldCoins.com

After a probable absence of over a century, perhaps the most important New Orleans gold coin in existence is coming back to its ancestral home. My friend Paul Hollis, a coin dealer from Metairie (a suburb of New Orleans), has arranged for the unique Proof 1844-O eagle to be placed on exhibit at the New Orleans mint. This coin, with an estimated value of $2.5 million, goes on public display November 1 and will also be taken around Louisiana on tour by Hollis.

The New Orleans Mint began producing coins in 1838. The very first issue struck by this mint was a group of 20 half dollars to inaugurate coinage and a small group of Proof half dollars were made in 1839 (plus at least one Dime dated 1839-O is known that has been designated a “Specimen” by NGC). So, we know that the New Orleans mint had experience with making Proof coins and that the quality of these was comparable to that seen at the Philadelphia mint.

In 1844, the New Orleans mint produced at least one example of a Proof half eagle and eagle. Remarkably, both still exist and, even more remarkably, both are superbly preserved. Why were they produced and who were they struck for?

Unfortunately, contemporary documentation does not exist that gives the definitive answer to these questions, so we have to make some assumptions. I think it’s safe to say that the Proof 1844-O gold set was struck in commemoration of either a special event or, more likely, a visit to the Mint by some special VIP or dignitary. My guess would be that they were made for personal presentation to President John Tyler.

What is interesting about these 1844-O Proofs is that there were no other Proof gold issues produced at the branch mints until 1854 when San Francisco struck a double eagle in this format. But in the case of the 1854-S double eagle, the reason for producing the coin is obvious as it was made to commemorate the opening of the new mint. One would think that if New Orleans were to have made gold Proofs, they would have struck a small number of Proof quarter eagles in 1839 or half eagles in 1840. But if these were ever made, they have disappeared without a trace. (more…)

The American Civil War evokes many strong thoughts and emotions to this day – the end of slavery in our country, the great and terrible battles that saw more that 600,000 men perish, and the secession – and eventual reunion – of 11 states. Amid brilliant and incompetent generals, vast military campaigns and political turmoil, the impact of money on the war often gets overlooked.

“A House Divided: Money of the Civil War,” a new exhibit opening Oct. 9 at the American Numismatic Association’s Edward C. Rochette Money Museum, takes a unique look at this epic, bloody time in United States history, while showcasing the era’s coins, paper money, medals, and new ideas in war financing that helped lead to the North’s victory. Visitors will be immersed in the sights and sounds of the war and the era.

The Civil War changed the country forever, including its monetary and economic system: a system based on bullion coinage and privately issued paper money was replaced by a central system based on National Bank notes, and coins and paper money produced and backed by the federal government.

To pay for the war, the North and South were forced to issue huge amounts of money not backed by gold or silver – a fragile concept in the 1860s. Union “greenbacks” (Legal Tender notes and Demand notes, printed with green ink on one side) were instead backed by bonds; an investor could purchase bonds with greenbacks, and then redeem the bonds for gold. The emergence of “war bonds” helped create a more solid economy for the Union; in the Confederacy, where financial systems were underdeveloped, inflation ran rampant and made it impossible to continue the war effort. Because of the success of “war bonds,” they were used by the U.S. to control inflation again during both world wars.

Civil War soldiers were supposed to be paid every two months, but were fortunate if they got their pay at four-month intervals. Payment in the Confederate Army was even slower and less regular. Union privates were paid $13 per month at the start of the war.

“With pay as irregular as it was for soldiers, especially for Confederates, you can imagine how important financial support from family could be,” said Money Museum Curator Doug Mudd. “Many soldiers relied on ingenuity – or desperation – to get what they needed to survive. Half-starved men with weapons can make life very hard on civilians.” (more…)

“The Medal Is the Message: Global Ideas in Handheld Sculpture,” an innovative exhibit at the Edward C. Rochette Money Museum, is closing on Sept. 15, and will be replaced by “A House Divided: Money of the Civil War,” opening on Oct. 9.

“Global Ideas in Handheld Sculpture,” which opened in Sept. 2007, features more than 1,400 works of art created by artists from 32 countries. The exhibit was created for the International Art Medal Federation (FIDEM) Art Medal World Congress, which was hosted by the American Numismatic Association in Colorado Springs. It was the first time in 20 years the prestigious event took place in the United States.

The theme of the Congress, Passages to Reconstruction, conveyed a message of hope following Hurricane Katrina and the 2004 Indian Ocean tsunami. Many artists incorporated themes of tragedy and renewal in their work.

The Money Museum will celebrate the opening of “A House Divided: Money of the Civil War,” with a gala public reception from 5 to 7 p.m. Oct. 9. For more information, call 719- 482-9814 or e-mail museum@money.org