1850 $10 California Eagle White Metal Restrike - Baldwin Horseman K-1g PCGS MS64

Here's a great restrike of a rarity from the days of the California Gold Rush, one with a helluva story to go along with it. PCGS has graded one in MS64, with only one finer.

The greed common to our own day was no stranger to San Francisco during the Gold Rush. Originally a watchmaker and jeweler, Baldwin & Company purchased all stock and machinery from F.D. Kohler & Company in March of 1850. This enabled Baldwin to begin minting gold coins for the California economy almost immediately. Baldwin & Company struck more gold coins than any other private California mint during 1850-1851. Initially, the gold coins they produced were welcomed by the currency-starved population.

Gold miners during the California Gold Rush.

They were very productive during this time, striking around $2 million worth of $5.00, $10.00, and $20.00 gold pieces for almost 12 months, announcing "Our coin is redeemable on presentation." However, in March of 1851, James King sent specimens of the Baldwin & Company coins to Augustus Humbert to be assayed. Humbert discovered that those "redeemable on presentation" coins were worth respectively $4.91, $9.74, and $19.40--or around 2% to 3% below their face value. King alerted the major newspapers of the day to report the results. That inspired emotional editorials of fraud and swindle.                  

The California legislature reviewed the topic and passed the Act of April 15, 1851, which prevented any additional production of small denomination gold coins. Meanwhile, merchants would only accept the Baldwin coins at discount, typically as much as 20% off the face value. This enable local business to make a profit on them, for the mint or assay office melted down most of the Baldwin & Company coins. This accounts for the great rarity such coins have become. Baldwin and his partner, Bagley, hightailed it out of San Francisco on the steamer Panama, heading for the East Coast.