Go to a coin show and price the following 1921 U.S. coins: the S-mint nickel, the P- and D-mint dimes, the quarter, all three halves, and the Peace dollar. What do they all have in common? Low mintages and high prices. Why is that? Because the state of the economy plays a very important role in the production of our currency.

The post-World War I years saw a slowdown in the economy of the United States. The decade before World War I, however, had seen booming economic growth unmatched in history. This amazing economic growth continued during the war, when many nations mobilized their national resources into command economy structures.

Recession reared its ugly head in 1921. The economy of North America took a nosedive and shrank by a much larger percentage than it did during the Great Depression. What caused the recession? The sudden halt of wartime production was a major reason. U.S. manufacturers had large inventories of goods that the consuming public simply could not absorb. American exports fell sharply at the end of the war. Add to that a massive influx of labor due to the returning troops. Read Full Story

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