The Currency Connection: Paper Money from the Era of the 1870-S Half Dime, Silver Dollars, and Three Dollar Gold

Coins didn’t circulate in a vacuum. Let’s look at the fascinating paper currency that was used right alongside this piece.

When we discuss legendary American rarities like the 1870-S Half Dime, the 1870-S Silver Dollar, and the 1870-S Three Dollar Gold piece, the conversation almost always centers on the coins themselves — their mysterious origins, their unknown mintage, their breathtaking scarcity. And rightly so. These are among the most enigmatic issues in all of American numismatics. But as a syngraphics expert who has spent decades studying the paper money that circulated alongside these extraordinary coins, I can tell you that the currency story of this era is every bit as compelling. The 1870s represent a fascinating crossroads in American financial history, and understanding the paper money of this period gives us a richer, more complete picture of the world in which these coins were born, spent, and — in some cases — lost forever.

The Historical Backdrop: San Francisco in 1870

To understand the paper money that circulated alongside the 1870-S rarities, we first need to understand the economic landscape of the era. The second San Francisco Mint was under construction from 1869 to 1874, and on May 26, 1870, a cornerstone laying ceremony was held to mark the occasion. This is the very event that many researchers believe gave birth to the 1870-S Half Dime, the 1870-S Silver Dollar, and the 1870-S Three Dollar Gold — coins for which the San Francisco Mint kept no official production records.

But what was the monetary environment like in San Francisco in 1870? The city was the financial capital of the American West, a booming metropolis fueled by Gold Rush wealth, Comstock Lode silver, and explosive commercial growth. The banking system was a patchwork of state-chartered institutions, private bankers, and the relatively new National Banking System established during the Civil War. Paper money was the lifeblood of daily commerce, and the types of notes in circulation tell us a great deal about the economic realities of the time.

National Bank Notes: The Backbone of Western Commerce

The most significant paper currency circulating in San Francisco in 1870 was the National Bank Note. These notes were issued by banks chartered under the National Currency Act of 1863 and its successor, the National Banking Act of 1864. The system was designed to create a uniform national currency backed by U.S. government bonds, and it was particularly important in Western states and territories where the banking infrastructure was still developing.

San Francisco was home to several national banks during this period, and their notes would have been the paper currency most likely encountered by anyone attending the cornerstone ceremony — or by anyone who later spent one of the legendary 1870-S coins in circulation. Here’s what collectors should know about National Bank Notes from this era:

• Large-size National Bank Notes issued in the 1870s featured distinctive designs with the bank’s name prominently displayed, along with the city of issue. San Francisco nationals are particularly desirable to collectors today.
• First Charter Period notes (1863–1882) are the type that would have been in circulation during the era of the 1870-S coinage. These are identifiable by the “First Charter” designation and the green Treasury seal.
• Serial numbers and bank numbers can help identify which specific banks issued notes, and surviving examples from San Francisco institutions are actively sought after by syngraphics collectors.
• Condition rarity: Most National Bank Notes from this era were heavily circulated and eventually redeemed. Crisp, uncirculated examples from San Francisco banks are genuinely rare and command strong premiums.

In my experience grading National Bank Notes from the 1870s, the survivors tend to grade in the Very Fine to Extremely Fine range, with Uncirculated examples being genuinely exceptional. The paper quality of the era was durable, but the sheer volume of handling these notes endured means that high-grade examples are prized possessions in any collection.

Silver Certificates: The West Coast Preference

While National Bank Notes were the most common form of paper currency, Silver Certificates played a particularly important role in Western commerce — and they have a special connection to the story of the 1870-S Silver Dollar.

Silver Certificates were first authorized by the Act of February 28, 1878, which means they came into existence just a few years after the 1870 cornerstone ceremony. However, the monetary debates that led to their creation were already raging in 1870. The Coinage Act of 1873 — which would become known as the “Crime of ’73” — effectively demonetized silver and set the stage for the political and monetary battles that eventually produced Silver Certificates as a compromise between gold-standard advocates and silver interests.

The connection to our story is direct and compelling:

• The 1870-S Silver Dollar was struck in an era when silver coinage was being debated at the highest levels of government. The fact that these dollars (all but one of which show circulation) entered the stream of commerce means they would have circulated alongside — and been exchangeable for — the paper money of the day.
• Early Silver Certificates from the 1880s and 1890s that bear designs related to silver (such as the famous “Educational Series” of 1896) represent the monetary philosophy that the 1870-S dollars embodied — the idea that silver was a legitimate basis for currency.
• For collectors interested in matching coin and currency sets, pairing an 1870-S Silver Dollar (if one could ever be obtained!) with period Silver Certificates and National Bank Notes from San Francisco would represent one of the most historically significant collections in American numismatics.

The Banking Environment: Private Bankers and State Banks

It’s important to remember that the National Banking System was not the only source of paper money in 1870. San Francisco’s financial district included powerful private bankers and state-chartered banks that issued their own notes. Institutions like the Bank of California (founded by William Ralston) and the firm of Darius Ogden Mills were major players in the city’s financial life.

These private and state bank notes are among the most fascinating — and most challenging — areas of syngraphics collecting. Here’s why:

• Lack of standardization: Unlike National Bank Notes, which followed federal design templates, private bank notes varied enormously in size, design, and quality. Some were beautifully engraved works of art; others were crude and utilitarian.
• Redemption uncertainty: The value of a private bank note depended entirely on the solvency of the issuing bank. Many Western banks failed during the economic panics of the 1870s, leaving their notes worthless. Surviving examples from failed banks are collected as historical artifacts rather than as representations of face value.
• Extreme rarity: Because most private bank notes were redeemed and destroyed upon presentation, surviving examples are often unique or nearly so. A private bank note from a San Francisco institution circa 1870 would be a significant acquisition for any syngraphics collection.

I’ve examined numerous Western private bank notes in my career, and the ones from the San Francisco area in the 1870–1880 period are among the most historically evocative. They speak to a time when the American financial system was still being built, when a banker’s reputation was the only guarantee behind a piece of paper, and when the line between legitimate currency and wildcat banking was sometimes razor-thin.

Matching Coin and Currency Sets: A Collector’s Holy Grail

This brings us to what I consider one of the most exciting collecting frontiers in American numismatics: matching coin and currency sets from the same historical moment. The 1870-S coinage — the Half Dime, the Silver Dollar, and the Three Dollar Gold — represents a perfect opportunity for this kind of collecting, even though the coins themselves are essentially unobtainable for most collectors.

Here’s how a serious collector might approach building a matched set from the 1870 era:

The Foundation: National Bank Notes from San Francisco

Start with National Bank Notes issued by San Francisco banks during the 1869–1874 period (the construction years of the second San Francisco Mint). These notes provide the essential paper money context for the 1870-S coinage. Look for notes from banks that were active during the cornerstone ceremony period, and prioritize examples in the best available condition.

The Silver Connection: Silver Certificates and Related Paper

Add Silver Certificates from the 1880s and 1890s that reflect the silver monetary philosophy embodied by the 1870-S Silver Dollar. The $1 Silver Certificates from the Series of 1886, 1891, and 1896 are particularly relevant, as they represent the ongoing debate about silver coinage that the 1870-S dollars predated.

The Gold Complement: Gold Certificates

Don’t overlook Gold Certificates, which were authorized in 1863 and began circulating in 1865. These notes, redeemable in gold coin, would have been the paper money counterpart to the 1870-S Three Dollar Gold piece. Early Gold Certificates are among the most beautiful and sought-after notes in all of syngraphics.

The Historical Bridge: Fractional Currency and Sutler Notes

For the 1870-S Half Dime connection, consider adding Fractional Currency from the 1860s and 1870s. These small-denomination notes were issued to address the coin shortage during and after the Civil War, and they circulated in the same spaces where half dimes would have been used. The historical irony is rich: fractional currency existed because small change was scarce, and the 1870-S Half Dime is one of the rarest small-denomination coins in existence.

The S.S. Cremorne Theory and Its Paper Money Implications

One of the most intriguing theories about the 1870-S coinage — mentioned in the original forum discussion — is the idea that additional coins may have been produced and subsequently lost when the S.S. Cremorne left San Francisco on June 1, 1870, and was never heard from again. While this theory has been largely dismissed (as noted in the forum, any substantial precious metal coinage would likely have been represented at the 1871 Annual Assay Commission), it raises a fascinating question for syngraphics collectors.

If additional coinage was produced for the cornerstone ceremony and distributed to guests, what paper money would those guests have carried? What notes would have been in the pockets and purses of the dignitaries, bankers, and Mint officials who attended the ceremony on May 26, 1870? The answer, almost certainly, is National Bank Notes from San Francisco institutions, possibly supplemented by private bank notes and, in some cases, Gold Certificates.

For the collector who wants to recreate the monetary world of the 1870 cornerstone ceremony, the paper money is actually more accessible than the coins. A carefully curated set of San Francisco National Bank Notes from the First Charter period, combined with Gold Certificates and early Silver Certificates, would provide a remarkably complete picture of the currency that circulated alongside the legendary 1870-S issues.

Authentication and Grading Considerations for Syngraphics

In my experience grading paper money from this era, there are several key factors that collectors should keep in mind when building a matched set from the 1870 period:

• Paper quality: Notes from the 1870s were printed on a blend of cotton and linen rag paper that has generally aged well, but look for examples with strong original body and no signs of pressing or restoration.
• Ink quality: Original, vibrant ink is a hallmark of high-grade notes. Faded or muddy printing significantly reduces both aesthetic appeal and market value.
• Margins and centering: Large-size notes from this era were often cut imperfectly. Well-centered examples with full margins are preferred and command premiums.
• Signatures: The signatures of the Register of the Treasury and the Treasurer of the United States appear on all federal notes from this period. Legible, well-positioned signatures are desirable.
• Bank-specific features: For National Bank Notes, the bank’s charter number appears twice on the note. Matching numbers and clear, sharp printing of the charter number are important grading considerations.

I always recommend that collectors work with reputable grading services — PMG (Paper Money Guaranty) is the syngraphics equivalent of PCGS for coins — when acquiring notes for a serious collection. The difference in value between a raw note and a graded, authenticated example can be substantial, particularly for rare bank issues from the Western states.

The Trime Question: A Paper Money Footnote

The forum discussion touched on an interesting aside: the absence of 1870-S Trimes (three-cent silver pieces). As noted, San Francisco never received Trime dies in any year — a reflection of the economic reality that Western commerce had little use for such a small-denomination silver coin. This is actually a paper money story in disguise.

The absence of small silver denominations in the West was one of the driving forces behind the issuance of Fractional Currency during and after the Civil War. These notes, in denominations as low as three cents, filled the gap left by the disappearance of small silver coins during the war. The fact that San Francisco never struck Trimes — and that Westerners had no interest in a coin of such small value — tells us something important about the monetary preferences of the region.

For the syngraphics collector, Fractional Currency from the 1860s and 1870s is a natural complement to any collection focused on the 1870 era. These notes are affordable, historically fascinating, and directly connected to the same monetary forces that shaped the production (and non-production) of coins at the San Francisco Mint.

Building Your Collection: Actionable Takeaways

For collectors inspired by the story of the 1870-S coinage and interested in exploring the paper money of the era, here are my specific recommendations:

1. Start with a San Francisco National Bank Note from the First Charter period (1863–1882). This is the single most important paper money collectible for anyone interested in the 1870 cornerstone ceremony. Look for notes from banks that were active in 1870, and aim for the highest grade you can afford.
2. Add a Gold Certificate from the 1865–1882 period to represent the gold coinage that circulated alongside the 1870-S Three Dollar Gold piece. The $20 Gold Certificate from the Series of 1865 or 1882 is a classic choice.
3. Include an early Silver Certificate from the 1880s to represent the silver monetary tradition embodied by the 1870-S Silver Dollar. The $1 Silver Certificate from the Series of 1886 (featuring Martha Washington) is both beautiful and affordable.
4. Seek out Fractional Currency from the 1860s and 1870s to represent the small-denomination monetary environment in which the 1870-S Half Dime would have circulated. A five-cent or ten-cent Fractional note is an excellent starting point.
5. Research the specific banks that were operating in San Francisco in 1870. The Bank of California, the Farmers National Gold Bank, and the First National Gold Bank are all institutions whose notes would have been present at or around the time of the cornerstone ceremony.
6. Consider the historical narrative when building your collection. The best numismatic collections tell a story, and the story of the 1870-S coinage — mysterious coins born at a historic ceremony, circulating in a city defined by gold and silver, in a nation still debating the very nature of its money — is one of the greatest stories in American numismatics.

Conclusion: The Rich World Behind the Coins

The 1870-S Half Dime, the 1870-S Silver Dollar, and the 1870-S Three Dollar Gold piece are rightly celebrated as some of the most mysterious and desirable coins in American numismatics. But as I hope this article has demonstrated, these coins existed within a rich and complex monetary world that is every bit as fascinating as the coins themselves.

The National Bank Notes, Silver Certificates, Gold Certificates, and Fractional Currency of the 1870s tell the story of a nation in financial transition — moving from the chaos of Civil War monetary policy toward the more structured system that would emerge in the Gilded Age. They tell the story of San Francisco as a Western financial powerhouse, where gold and silver were not just abstract monetary concepts but the very substance of daily commerce. And they tell the story of a cornerstone ceremony that may have produced some of the rarest coins in American history — coins that, once spent, would have been exchanged for the very paper money we collect today.

As a syngraphics expert, I can tell you that the paper money of this era is historically significant, aesthetically beautiful, and — compared to the 1870-S coinage — remarkably accessible. A collector can assemble a world-class set of currency from the 1870 period for a fraction of what even a single 1870-S coin would cost. And in doing so, they can tell a more complete story of the monetary world that produced these legendary rarities.

The next time you read about the 1870-S Half Dime or the 1870-S Silver Dollar, I encourage you to think not just about the coins, but about the paper money that circulated alongside them. Because in the world of numismatics, the full story is always richer than any single chapter.

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