As early as 1783, Thomas Jefferson, Benjamin Franklin, and Alexander Hamilton advocated for US currency to be based on a decimal system rather than the Roman system used by Great Britain. Partly due to their influence, when the Coinage Act of 1792 was passed, it included provisions for coins representing 1/10 and 1/100 of a dollar, to be called a dime (originally spelled disme) and a cent.
The dime was specified to contain one-tenth the amount of silver in a dollar coin in an alloy of 89.24 percent silver and 10.76 percent copper. This resulted in the dime being a small, thin coin to reflect its bullion value. This ratio continued until 1837, when it was increased slightly to 90% silver.
The First Dimes– The 1796 Draped Liberty Bust
While a few pattern coins were made in the Mint’s first year of operation and carried the disme spelling, production problems and low demand put the fist circulation issue off until 1796. Roughly 475,000 were produced over the next eleven years with a bust of Lady Liberty facing right, her hair tied in a ribbon at back and a drape around her shoulders.
The 1796 coin has 13 stars surrounding Liberty and the word “Liberty” above her head. The year appears below the bust. 1797 coins had both 13 and 16 stars on the obverse (face) reflecting the admission of Tennessee that year.
The reverse of the 1796 and 1797 coins featured a small eagle perched on a cloud surrounded by a wreath. United States of America was inscribed around the diameter. The Draped Bust dime carried no indication of its denomination, relying instead on its distinct size for identification.
These coins are very rare and seldom come up for sale. Lower grades can bring around $1,000 and a top-quality coin could sell for over $400,000, according to some estimates.
The Eagle Bulks Up – 1798-1807
Thirty-one mostly minor design changes occurred until the Draped Bust design was discontinued in 1807. The most significant change occurred in 1798 when the original “scrawny eagle” on the reverse was replaced by a heraldic eagle based on the Great Seal of the United States holding a ribbon with the national motto E Pluribus Unum in its beak. The stars on the obverse were fixed at 13, and the reverse had a cluster of stars above the eagle’s head representing the number of states in the Union at the date of minting.
Rarities and Values
Only around 2100 graded Draped Bust dimes are known to exist in total, about 500 of the small eagle design and 1600 heraldic eagles.
The 1804 Draped Bust is the lowest mintage of the series, and some were made with 14 stars due to an engraving error. Only 20 examples of the 1804 dime are known including an estimated MS62 coin that sold for over $367,000 in 2013 and a PCGS-graded AU58 coin that went for $632,500 in 2008 at auction. There is also a 1798/7 date overstrike and coins with both four and five berries in the wreath on the reverse were made in 1805.
Values for these very rare coins in all mintages range from around $1,000 in heavily worn condition to well over $400,000 in About Uncirculated and higher grades.
Next Up: Capped Bust Dimes, 1809-1837
