1795 $1 Draped Bust Silver Dollar, Centered Bust PCGS VF30 (CAC)

This issue is the first year of the short-lived Draped Bust/Small Eagle series of 1795-1798. Of the "Centered Bust" variety, PCGS has graded 79 as VF30, with 257 finer. In CAC, there are 6 in VF30 with 41 finer. The "Centered Bust" refers to the positioning of the Liberty bust within the field of the die. The other variety is the "Off-Center Bust." Ron Guth writes, "The difference between the two can be seen best on the position of the bow behind Liberty's head. On the Centered Bust, the bow is well away from the stars..." The denomination is displayed on the lettered edge: "HUNDRED CENTS ONE DOLLAR OR UNIT."

Obverse comparison of 1795 Draped Bust dollar CENTERED/OFF-CENTER BUST.

This issue is quite rare. Out of its total mintage of 42,738, there are an estimated 1,400 total surviving pieces today in the 21st century. Where did those coins go? The 1795 silver dollars had less silver than the omnipresent Spanish-American 8 Reales. The standard U.S. silver dollar had 371.25 grains of silver, while full-bodied Spanish dollars had around 377.25 grains. Even though that was the case, in the West Indies the U.S. dollar and the Spanish dollar traded at par. Therefore it was advantageous for merchants to partake in a continual cycle of exchange arbitrage: ship American silver dollars to the West Indies and trade them for Spanish dollars. In that manner the U.S. silver dollars virtually disappeared from circulation. The vast majority of U.S. silver dollars ended up being shipped off as part of the China trade, where they were discounted and melted into Chinese bullion called sycee.