1796 Gold Eagle - The second year of regular gold coinage production in the United States saw a limited number of 1796 Gold Eagle produced. The largest denomination in coinage, authorized in 1792, had an estimated 3,500 to 4,146 pieces produced for circulation. These estimates have been widely fluctuating, and most students of the early gold series have come up with various theories as to the true mintage, based on the various deliveries made in the years 1795 to 1796. During the calendar year of 1796, the different varieties made up a total of 6,934 ten dollar gold coins struck for circulation. However, there is an important aspect of history that makes the high estimate to be unreliable.

The state of Tennessee joined the Union on June 1, 1796. By doing so, it was the sixteenth state that formed the United States of America, with three being added after the original thirteen had formed in 1776. As was usual during the first few years of production, a star was added for the state on the nation’s coinage. As such, the 1796 gold eagle that would be struck before June would carry fifteen stars, and those minted afterwards would carry sixteen, with the added star for Tennessee. Yet, things are not that simple. First of all, there is not a single 1796 gold eagle known with fifteen stars, all have sixteen stars, although there were pieces struck and delivered during the early months of 1796.

All eagles dated 1796 were struck from a single die pair. The sixteen stars on the obverse are arranged evenly, with eight to the left of the portrait and eight to the right. The reverse is a new die, showing eleven leaves under the eagle, instead of the previously used thirteen or nine. It is unknown if this is done on purpose, perhaps as an experiment, or if this was an engraving error. The reverse die was later paired with the only die pair of the 1797 small eagle ten dollar gold pieces, which were struck before the reverse die design was completely changed.

One interesting observation can be made from the use of these dies. By studying die markers as cracks, clashing and lapping, the use of the dies can carefully be reconstructed. The most recent work on this subject has been written by Bass-Dannreuther (Early U.S. Gold Coin Varieties), which also deals with the lower denominations of gold coinage.

What we see here is a prime example what makes the studying of early United States coinage so interesting, but at the same time confusing. To prevent the rise of unneeded costs at the United States Mint, workers were instructed to use dies until they were unfit for coinage, whatever the date was on the coinage. This has led to the situation that we can’t be sure when the coins were actually struck, as dies were often used in different years than those shown on the coins.

In this case, a single 1796 gold eagle shows positive marks that it was struck after a majority, if not all 1797 gold eagles. While only a single piece is known, it is unknown if it was created intentionally, part of a separate delivery or just a mere coincidence. Unless a document of the United States Mint is discovered showing details of the usage of dies, which is extremely unlikely as such a document never turned up during the last 200 years, we will never know the story of that particular coin.

Overall, the 1796 gold eagle is a coin that is extremely scarce in any grade, with approximately 125 to 175 pieces known in all grades. Most of these will grade About Uncirculated, showing at least moderate signs from circulation. Correctly graded uncirculated coins are extremely rare, with most estimates showing eight to twelve known in all uncirculated grades, at most. While the population reports show considerable higher numbers, it can be assumed that these include a large number of resubmissions in hopes of a higher grade.

On the other hand, this issue is seldom found in grades below extremely fine, and if they do most show problems of various kinds. These pieces are usually avoided by many collectors, but do offer some opportunities for the budget-minded collector, although they are still not cheap and easily available.