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Lot 540
"1804" Altered from an
1802/1 B-4, BB-232. The Werner/Ostheimer coin. Sharpness of VF-30 but
cleaned and altered. No coin in American numismatics is steeped in as much
history and speculation as the 1804 silver dollar, "The King of American
Coins". Born of improper accounting, coined in subsequent decades, coveted by
all collectors, owning an 1804 dollar is the zenith of a numismatists
collection, and precious few will ever be able to afford to realize this common
dream.
Origins of the 1804 "originals" (please see the superb reference
The Fantastic 1804 Dollar by Eric Newman and Ken Bressett). Newman and
Bressett finally teased out the truth on the origin of the known 1804 proofs.
Apparently, an order came down to the Philadelphia Mint from on high to produce
a couple of proof sets sometime in 1834, one to be given to the King of Siam
and another set to the Imaum of Muscat. As most denominations were currently in
production, dies were simply polished up and proof coins produced as needed.
However, the eagle and silver dollar were no longer being produced, and records
indicated both ceased in 1804 and 1805 respectively. Luckily for the Mint
workers, Franklin Peale was an able engraver on hand at the time, and best of
all, the original die punches for the date, lettering, Lady Liberty and the
eagle were still on hand at the Mint. A new 1804 dollar obverse and reverse die
were engraved, and a few coins struck to fill the coins needed for the sets,
thus proof 1804 silver dollars and proof 1804 eagles were produced. Remarkably,
no official record of the King of Siam set or the Imaum of Muscat coins exists,
but sure enough in 1962 the King of Siam set walked into Spink's in London,
with the coins still housed in the yellow morocco leather case. This caused
quite a numismatic stir, and was no doubt the highlight of the 1962 ANA
convention where the discovery was announced. It is probable that the set given
to the Imaum of Muscat was disbursed along with the C. A. Watters collection
sale by Glendening & Co., on June 14, 1917, as that collection contained an
1804 proof dollar, as well as an 1834 proof half dollar, quarter and half dime
and notably an 1834 dime, cent and half cent, although no condition was
included on these three, they presumably were proofs, if indeed Watters ended
up with the silver and minor issues from the Imaum of Muscat proof set. Newman
and Bressett theorize that Watters was not a gold collector (as evident in the
referenced sale of his coins) and the 1804 eagle and other 1834 gold coins may
have been sold separately when the set was broken up.
Apparently, the
Philadelphia Mint of the 1830s struck a few additional 1804 silver dollars,
perhaps for collector demand, or for the Mint cabinet, but of the originals, 8
are known today. Demand continued, and the Philadelphia Mint created an
additional 7 1804 proof silver dollars (Class II and Class III) around 1857/58,
setting off a rather nasty mint scandal. Each of the 15 known specimens are
well known, and the appearance of any of these at auction creates a tremendous
numismatic stir.
So, getting back to the Mint records, they report
officially that 19,570 silver dollars were delivered during 1804. Remarkably,
the Mint also reported that 321 silver dollars were delivered in 1805! To date,
no collector had found a regular issue 1804 or 1805 silver dollar, though many
alterations had been attempted to fool the uneducated. One of the earlier
attempts was by John A. Bolen, who was famous for fabricating copies of early
American coins during his heyday of 1862 to 1869. Bolen made an 1804 dollar by
altering an 1803 B-6 dollar, which remains in the ANS collection. Bolen was
kind enough to stamp his name on the edge as well! Numerous electrotypes were
created from the few known 1804 dollars, and many collectors had to settle for
one of these as the price for a "real" 1804 dollar has always been very high.
The history of numismatics is rich with the number of collectors, and even
dealers, which have been duped into believing their 1804 dollar was real. Even
Sylvester S. Crosby was duped by two 1804/3 dollars (altered from an 1803 B-6)
which crossed his path, Crosby stating that the die itself was overdated at the
Mint, just as seen on the 1805/4 half dollars. Frossard, based on Crosby's
authentication, listed one in his April 1892 sale of the Saltmarsh collection,
but it was withdrawn before the sale as an alteration before the sale took
place. Where these coins are today is a mystery.
Thus, it shouldn't have
been a surprise when yet another fraud appeared in 1939. The story of the coin
offered herein begins. The British Museum received a package of two coins in
1939 reportedly from the West Indies, with a letter requesting their
verification, appraisal and sale. (Newman/Bressett, The Fantastic 1804
Dollar 25th Anniversary Follow Up). The coins were an 1804 and an 1805
silver dollar. The two coins were shown to a visiting American numismatist,
Samuel L. Friedenberg. Friedenberg thought they were genuine, but was uneasy
with his decision and wished to examine them further, but was unable to return
to the British Museum before returning home. Friedenberg wrote about the coins
in the 1939 Numismatist, page 799. Meanwhile, the coins were sent to Spink &
Son., Ltd., who selected B. G. Johnson of St. Louis to best give an opinion and
assist in a possible sale. B.G. Johnson received the coins, and quickly
pronounced them forgeries, and his findings were published by Spink's (without
Johnson's name) in the same issue of the Numismatist in 1939. Spink's then
unloaded the two dollars on Farren Zerbe, who purchased them as alterations.
Zerbe then sold them to New York numismatist Louis S. Werner in 1941, who
purchased them as alterations "for an undisclosed sum". Zerbe later displayed
the two dollars at the New York Numismatic Club in 1941 and again in 1944,
although they belonged to Werner, but always stating they were alterations. A
member of the club, F. C. C. Boyd offered to purchase them from Werner, but
Werner declined, believing them to be genuine.
Werner laid low for a while.
In 1950 he sent a rubbing of the 1805 to Milferd H. Bolender, who had just
published a new variety book on Early Silver Dollars, and he was now the
recognized expert in the series. Bolender wrote back that he thought the
rubbing may in fact be an alteration of his 1803 B-1 dollar, and wanted to
examine the coin. Werner would not send the coin, as he could not obtain enough
insurance to cover his perceived value of the numismatic treasure. In 1951,
Werner displayed his 1805 dollar at the ANA show in Phoenix, stating it was the
"numismatic find of the century" and that no dollar of 1805, whether genuine or
false, had ever appeared, and further, Werner claimed that his coin has passed
all tests of genuiness, including the heat test. In 1952 Werner brought the
1805 (see next lot) dollar to Freeport, Illinois to allow Bolender a chance to
examine it. To his surprise, Bolender believed it to be genuine and not
altered. Werner continued to believe, or at least promote, his unique 1805 and
very rare 1804 dollars.
By 1960 Werner thought it time to move on, and sent
his priceless alterations to the Academy Testing Laboratories, where they were
declared genuine and not altered after a series of tests in March 1960. In June
1960 the pair was sent to Lucius Pittien in New York to test and photograph the
coins. Again they were declared genuine and no indication was found that they
were altered. Werner then contacted none other than Louis Eliasberg about
purchasing his treasures. Eliasberg wrote Werner that there is "no record of
its existence other than your communication". Undaunted, Werner then sent both
coins to Milferd Bolender asking for his opinion. Bolender wrote a letter dated
December 8, 1960 that the 1804 was authentic, struck at the U.S. Mint and not
altered, and issued a similar letter on the 1805 dollar dated December 10,
1960.
Werner now had metallurgical tests and authenticating letters from the
most noted authority on Early Dollars, so on December 12, 1960 he wrote Alfred
J. Ostheimer, III, who owned the most advanced early dollar collection ever
formed to that time, that the two coins were available. Werner including both
discussions of those who thought they were alterations, as well as the letters
and studies which confirmed their genuiness. Ostheimer was very interested, but
for $30,000 for the pair, wanted to be really sure. A complex contract was
structured, wherein Ostheimer had the option to purchase the pair. Notably,
there was no guarantee of authenticity, only a guarantee of title or ownership.
Ostheimer paid the deposits required, and concluded the transaction with
Werner. Ostheimer soon began publishing articles in the various numismatic
media about the coins. Eric Newman requested and received photographs of the
1804 and 1805 dollars. Newman soon stated that he believed they were both
alterations, and requested to examine the coins further, and travelled to
Philadelphia where Ostheimer showed him the coins. Further, Bolender changed
his mind, and decided he had been fooled, and now felt they were indeed
alterations.
Ostheimer hated to be duped (who wouldn't!), and kept the coins
for another nine years. In 1970 he wrote Werner that he should take back the
coins and refund his money, apparently Werner did not. Later, when the
Ostheimer collection was sold (Superior, August 1975), these alterations were
not included, and they have not been publically displayed in the last three
decades to our knowledge.
Newman states in conclusion on these pieces: "The
purpose of this detailed discussion is to emphasize the importance of
guarantees of authenticity; the danger of relying on testing results by
numismatically-inexperienced people; the risk of reliance on the opinions of
people who have a conflict of interest; the frequency of opinions being
changed, and the reappearance of non-genuine coins." Newman also states that
"These dollars are very high in contention for being the most deceptive
alterations of genuine coins" in his 25th anniversary review of the 1804
dollar.
All things considered, this numismatist (JMM) was frankly amazed at
how non deceptive this coin is. An experienced Early dollar collector learns
that all dies have familiar lumps and die scratches which are unique to that
die, some are minor, others are very obvious. Each die pairing has its
peculiarities, and learning these can assist the collector in quickly
identifying a given variety. Newman notes that these alterations were likely
made by Smith of Ann Street, an engraver who apparently was quite skilled at
alterations. I would guess that whoever altered this coin, was not an expert in
early silver dollars, as the two host coins used to make these famous
alterations both contain obvious die "signatures" which confirm which die
variety they were prior to the alteration. On this particular coin a glance
will note the 4 mm die scratch on Liberty's chest which extends nearly to the
thirteenth star, this die scratch is present on the common 1802/1 B-4, BB-232
variety, and anyone experienced with early dollars will recognize this die
scratch in a glance, and know what variety it is instantly. Somehow, this
obvious feature was ignored by most of the experts, whe wanted to believe in
this great new numismatic discovery, which at last gave credence to the 1804
silver dollar mintage long reported in reference books. Further, the E of
LIBERTY is high, well above the base of B, and this is also a diagnostic for
this obverse die. By not removing this 4 mm die scratch, identifying the
obverse die is mere child's play to the experienced dollar collector.
Curiously, great effort was made to redirect a few of the obverse stars, as
noted by Newman. He also notes (page 107) that "the points of certain stars on
each obverse having been reaimed to alteration in an attempt to make the dies
appear to differ from all other dollar obverse dies regardless of date"
Examination shows that star eight and nine were reaimed (the points slightly
redirected) as faint tooling is evident with a 10X loupe.
The coin itself
has been harshly cleaned, and we note extensive faint pin scratches around
STATES OF where some dirt was likely removed by someone less appreciative of
the importance of this coin. As to the date, there are tooling marks on the
right side of the "4", and the post of that number is awkward in appearance. I
suspect that after the coin was altered, it was dipped in an acid solution,
which micro pitted and altered the surfaces enough to hide most of the fine
tooling marks around the date, enough so that other experts agreed that the
date had not been altered. Today the coin has a cleaned and retoned appearance,
and there are minor handling marks and light scratches on both sides. Two
surface marks will help identify this one in the future, a small field mark
below the LI of LIBERTY, and a small knock just above and to the right of the
Eagle's head.
Estimated Value $7,500-UP.
Sent to the British Museum
in 1939, sold as an alteration to Farran Zerbe, then to Louis S. Werner in
1941, then to Alfred J. Ostheimer, III and next to our consignor who wishes to
remain anonymous.
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