COINS AND CURRENCY

Terrritorial note
Until the Civil War, the United States had no national currency, and
most of the coins in circulation were privately minted. In order to provide
a satisfactory circulating medium for the early settlers of Utah, Brigham
Young and his associates in the LDS Church established a church mint in
1848, and also placed in circulation paper money backed by the treasury
and officials of the LDS Church. Coins were minted in 1849, 1850, and 1860;
currency with Brigham Young's signature was placed in circulation in 1848,
1850, and 1858.
The church mint, a small adobe building on the northeast corner of Brigham
Street (South Temple) and Main, was made possible when members of the Mormon
Battalion returned from California in the summer and fall of 1848, bringing
gold dust earned in California after the discovery of gold there earlier
that year. In addition, some twenty or more young Mormons were sent in 1849
and 1850 to California to prospect for gold. Although they were not particularly
successful, they did send back or take back to Utah several thousand dollars
worth of gold dust. Much of this ended up in the church treasury. In November
1848 Brigham Young commissioned John Kay to make dies and coin the gold
dust. The inscription for the Deseret coins was designed by Brigham Young,
John Taylor, and John Kay. On one side, the phrase "Holiness to the
Lord" encircled the ancient emblem of priesthood, a three-point Phrygian
crown over the all-seeing eye of Jehovah. On the other side, the words "Pure
Gold" and the denomination encircled clasped hands, the emblem of friendship.
The stamps for the coins were engraved by Robert Campbell, a young Scottish
convert. Forty-six $10 gold pieces were coined before the crucibles were
broken in late December. New crucibles could not be brought in from the
Midwest until the following fall.
Recognizing the need for a temporary circulating medium superior to packets
of gold dust, Brigham Young and his associates made plans to issue paper
currency until coins could once more be minted. The first issue consisted
of small bills, two inches wide and four inches long, hand-printed by pen
and ink on plain white paper (there was not yet a printing press in the
region). Bills were made for 50 cents, $1.00, $2.00, $3.00, and $5.00, and
were signed by Brigham Young, Heber C. Kimball (Brigham Young's counselor),
and Newel K. Whitney, presiding bishop of the church. The bills were stamped
with the seal of the Twelve Apostles, which consisted of the emblem of the
priesthood encircled by sixteen letters: P.S.T.A. P.C.J.C.L.D.S. L.D.A.O.W.,
which was an abbreviation for "Private Seal of the Twelve Apostles,
Priests of the Church of Jesus Christ of Latter-day Saints, in the Last
Dispensation All Over the World." All of the 830 notes in the initial
issue, with a face value of $1,365.00, bore the date January 2, 1849."
A second issue of 735 separate bills with a face value of $1,217.50 was
issued bearing the date of January 5, 1849. The church also had a supply
of engraved Kirtland, Ohio, bank notes which bore the signatures of Joseph
Smith and Sidney Rigdon, and decided to reissue these with the additional
signatures of Young, Kimball, and Whitney. Thomas Bullock, clerk of Brigham
Young, also put a private mark on the bills to authenticate those issued
against gold dust. Some 135 of these bills in $1.00 and $3.00 denominations
were placed in circulation on 10 January 1849, and 256, mostly of the $5.00
denomination, were in circulation before fall, bearing a face value of $1,33l.00.
Later in January 1849, Truman Angell, church architect, made a press that
could print paper currency. On 20 January 1849 a total of $3,329 bills in
50 cents, $1.00, $2.00, and $3.00 denominations were issued; these carried
a face value of $5,529.50, and were modeled after the handwritten bills
issued on 2 January. Feramorz Y. Fox, who studied the records of these issues,
which are in the LDS Church Archives in Salt Lake City, found that these
issues of currency were secured by an 80 percent reserve of gold. Most of
the gold, in California-minted coins or dust, was paid in to the church
as tithing. These gold-backed church treasury notes, or perhaps more accurately,
warehouse receipts for gold dust, appear to have been a generally acceptable
means of exchange in the Salt Lake Valley. When the church mint resumed
coinage in the fall of 1849, the paper currency was redeemed, and most of
it was destroyed. Of the original 5,150 notes, only 184 notes, valued at
$269.00, were outstanding in May 1850.
Crucibles for minting were brought to the territory in September 1849, and
the church mint was ready to resume operations. Dies were prepared for $2.50,
$5.00, and $20.00 gold pieces to supplement the $10.00 dies made in late
1848. There was a slight change in the new design. The words "Pure
Gold" were represented by the initials P.G. and the letters G.S.L.C.
(for Great Salt Lake City) were added. The new coinage began in September
1849 and continued into 1851. Approximately $70,000 in gold pieces, mostly
in the lower denominations, were coined, some on church account, but mostly
on private account. The coins were at first minted without any alloy, but
later a small percentage of silver was added to increase hardness.
The edge was not milled. The coins were accepted for full value in the Salt
Lake Valley, but most of them went east to buy machinery and equipment and
other needed commodities not available in "Deseret." With the
discontinuance of new supplies of gold dust, the press and stamp were sold
to John and Enoch Reese, of Carson Valley, Nevada, who minted coins from
Nevada gold dust for a brief period. The dies were destroyed in the early
1850s.
In 1860 approximately $1,000.00 in $5.00 gold coins were produced at the
church mint. The design was much prettier and more artistic than the 1849-51
coins. On its face the coin had a crouching lion in the center with three
mountain peaks in the background and a small stretch of water in the foreground.
Around the rim was "1860 Holiness to the Lord." The phrase "Holiness
to the Lord" was written in characters of the Deseret Alphabet. The
reverse side had an eagle with outstretched wings and a beehive on its breast
and an olive branch and arrows in its talons. It closely resembled the United
States $5.00 gold piece of the time. Around the edge was "Deseret Assay
Office, pure gold 5 D."
The territorial governor, Alfred Cumming, disapproved of this issue and
issued an order in 1861 prohibiting further coinage. A congressional act
of 8 June 1864 permanently forbade the private coinage of gold.
There was one other issue of local currency. In January 1858, when troops
of the United States Army ("Johnston's Army") were en route to
Utah, Brigham Young and his associates were certain that the army intended
to conquer the Saints. For that reason they determined to outfit a large
defensive force to hold off the troops at Echo Canyon, and the settlers
abandoned their homes in northern Utah in order to avoid any conflict. Cost
of the defense was met by the issue of approximately $100,000 of "Deseret
Currency" in denominations of $1.00, $2.00, $300, $5.00, $10.00, and
$20.00. Most of these notes were personally signed by Brigham Young and
his secretary Hiram B. Clawson. Not having sufficient gold to serve as backing,
the church made the currency redeemable in livestock--horses, cattle, and
sheep--of which it had large herds. The church expected to issue engraved
notes, but pending their completion, $3,750.00 in "defense" notes
were printed by the Deseret News and issued immediately. These were
printed from 19 February to 17 March 1858. They followed by a "Move
South" series consisting of $40,146.00 in printed notes issued from
31 March to 17 July 1858.
Engraved currency was ready in September 1858, and during the next month
8,512 engraved notes were issued, bearing a face value of $16,512.00. These
notes represented the first copperplate printing done in the West and were
elegant. As described by U.S. Treasury investigator Marcus E. Jones, on
one end was an Indian with bow and arrows, or a gun (in the $3.00 bill);
on the other end was a hunter in various attitudes. Between the hunter and
Indian was a beehive. The $1.00 bill had, in addition, a group of livestock
in the center. The $2.00 bill had the picture of a man plowing with a yoke
of oxen, and a range of mountains in the background. The $3.00 bill had
a sheep-shearing scene and two women milking cows, one on either side of
the scene. The $5.00 note pictured a group of farmers harvesting wheat,
with a bust of George Washington on the right side and an American eagle
just below it. The wording on the $3.00 bill was "Deseret Currency
Association will pay the bearer $3.00 in livestock on presentation of $100";
that is, the Currency Association, Brigham Young, president, would redeem
the bills in livestock at going prices. The back side of the thin paper
bills was blank.
All of the 1858 notes presented were redeemed by July 1859. Some of the
currency was redeemed with horses and "horned stock," and some
of it was contributed as tithing. In 1862, the books of the Deseret Currency
Association were closed. In January 1864, as part of the Civil War, the
United States outlawed the issuance or circulation of any currency or substitute
for money by private firms or associations. Shortly thereafter, all remaining
notes held by the Deseret Currency Association were burned and the dies
destroyed.
See: Leonard J. Arrington, "Coin and Currency in Early Utah,"
and "Mormon Finance and the Utah War," in Utah Historical Quarterly
20 (January, and July 1952); and Harry F. Campbell, Campbell's Tokens
of Utah, 3rd Edition (1987).
Leonard J. Arrington