In the past
Colonial silver coins were just lumps of silver, cut and hammered.
READING A COIN
Machine-Struck Credit: The Pillar Dollar
Two pillars topped by a crown flank two hemispheres. From a distorted lump of silver to a perfectly round coin. A single innovation applied to the edge provided a way to detect traces of clipping and built the foundation for worldwide credit.
The Pillar Dollar in 3 minutes
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People kept shaving silver off the edges, so everyone doubted the coins' weight.
1728 and 1730
The state ordered coins to be struck by machine, not by hand.
1732
In Mexico City, perfectly round, machine-struck silver coins were born.
The 8-real silver coin, known as the 'Pillar Dollar'.
A rope-like pattern was engraved on the edge. If it was shaved, you could see it right away.
Two pillars and two hemispheres. The inscription read, 'Both are one'.
1767
The mint in Potosí also began striking coins by machine.
Trust in these coins, which showed if they'd been shaved, crossed the seas. They came to be called 'dollars'.
Until 1857
They continued to be used as money in America, even after its independence.
2What would you do?
You're a merchant in the colonies. You can be paid with one of two silver coins: a lumpy piece of silver with an irregular shape, or a perfectly round silver coin with an engraved edge. Which do you choose?
Pick one
The lump of silver
The lumpy silver coins had their edges shaved, with a little silver stolen each time. Every time you received one, you had to doubt its weight and purity.
The round silver coin with an engraved edge
The rope-like pattern on the edge made it easy to spot any signs of shaving.
Trust in these coins, which showed if they'd been shaved, crossed the seas. Eventually, they came to be called 'dollars'.
3Read more
Lumps of Silver, Shaved Away
Silver coins once struck in the colonies were called cobs. They were irregularly shaped lumps, simply cut from a silver bar and struck with a hammer. The shape differed from piece to piece, and their quality had declined over many years.
These silver coins had a chronic problem. Their edges were shaved off, and silver was gradually removed. Anyone who handled them had to question their weight and fineness each time. The empire's credit rested on these distorted fragments of silver.
A Notched Edge
In response to this situation, the new dynasty reformed the very way coins were made. In 1728 and 1730, two decrees ordered the overseas mints to cease hand-striking and switch to machine-struck coinage.
In 1732, the first machine-struck eight-reales silver coin was produced at the Mexico City Mint. This was the silver coin that people would come to call the 'Pillar Dollar'. The edge of this perfectly round coin was decorated with a cord-like pattern. The pattern on the edge of the coin serves as a clue to identify traces of clipping.
The Two are One
On the obverse of the Pillar Dollar are engraved two Pillars of Hercules topped by a crown, and two hemispheres. The accompanying motto is 'VTRAQUE VNUM'—meaning 'The two are one'. It is a declaration that the Old World and the New World are under one crown.
Let's look at an actual example. This is a silver coin struck in 1768 at the Potosí mint. Mechanization at Potosí had begun the previous year, in 1767. This single coin heralded the beginning of a new era.
The Silver Coin Called 'Dollar'
A silver coin of uniform quality, where clipping would leave visible traces. Its credit crossed the seas. Eventually, this silver coin came to be called by another name: Dollar.
In the United States of America, it continued to be used even after independence and was legal tender until 1857. The United States Coinage Act of 1792 even based its own dollar on the 'Spanish milled dollar then in circulation'. Even as the finances of the issuing empire declined, the eight-reales as a coin continued to be a success.
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