The coining of more than three million trade dollars at the Philadelphia Mint in 1877 is ample proof that most of this production was intended for profiteering. Holders of silver bullion deposited it with the mint and received trade dollars in return at their bullion value, stating that the coins were intended for export. Since the intrinsic value of trade dollars had fallen to around 90 cents by this time, the coins received represented a profit if placed into domestic circulation at their nominal face value of one dollar. Though this had been prohibited when the trade dollar's legal tender status was repealed in 1876, the law was unenforceable.

 

Taking advantage of this exchange were factory owners and other large employers of poor, often illiterate laborers, the former purchasing these coins from bullion brokers below their perceived face value and then paying them out as wages at the rate of one dollar each. Businesses would lose the trade of these wage earners if the trade dollars were refused for purchases, but then the recipients were stuck with the coins that banks refused to take above their diminished bullion value.

 

Treasury Secretary John Sherman attempted to thwart this practice by declaring in June of 1877 that no legitimate export demand for trade dollars still existed, but his efforts were in vain. It was easy to produce suspect documents indicating an intention of export, so the Mint was forced to fill the orders into early 1878. In fact, most of the 1877(P) trade dollars were struck during the second half of the year, subsequent to Sherman's declaration. This issue is very common in well worn condition, almost certainly reflecting this widespread domestic circulation. Examples are reasonably plentiful in the lower Mint State grades, but gems and quite rare. In addition, the typical 1877(P) trade dollar is weakly struck at its peripheries. The only variety of note is a doubled-die obverse, FS-101, which is evident at the right end of the banner reading IN GOD WE TRUST and also at the lowermost star on the right.