Owner Comments:
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1906 is the last year of the large-sized USPI Peso coin. This one is considered the "King of Philippine Pesos" because it is the rarest and the most sought after coin in the series—the key date.
Many factors make this coin rare. To begin with, mintage was a low 201,000, compared to an average of 6.65 million business strikes minted during the previous years. That’s only about 3% of what should have been produced.
Reasons for this low mintage began in 1905 when the global price of silver increased, resulting in the Peso coin’s silver content value becoming more than its monetary value. As an interim solution to the problem, the government stopped minting these Peso coins by mid-1906, and kept almost all of them in the treasury, unissued (Shafer, 1961).
By November, the silver crisis only got worse and the Peso coin’s bullion value continued to increase, surpassing its monetary value by as much as 13% (Shafer, 1961). A more permanent solution was needed, and this meant recoining the Peso into a coin of smaller fine silver content. So, under a Congressional Act approved on June 23, 1906, along with a Philippine Commission Act approved on December 6, 1906, the green light was given to re-coin Philippine silver coins.
The re-coinage of the Peso is perhaps the main reason for the cause of the 1906-S's rarity. With authorization from Congress and the Philippine Commission, the exodus of one Peso coins from the Philippines to United States began. An article about the first transfer appeared in the Manila Times newspaper of December 15, 1906: "Silver pesos amounting to two million are being shipped to the United States today for recoinage. The Manila Times reports that this is the first consignment to be sent abroad. The money, packed securely in wooden boxes, was taken from the Insular Treasury to the Transport Logan under heavy guard. After the silver pesos are recoined, they will be brought back to the Islands on the next trip of the Logan" (Basso, 1974, p. 50).
So, between the low mintage, the treasury hold-back, and the re-coining, we can infer that just about all of the 1906-S Pesos were melted down and "those that survive today somehow made their way into circulation and numismatic collections. The lack of Gem examples of this date confirms this theory” (Guth, n.d.).
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This coin is richly toned in gorgeous light to medium brown patina. It has a subtle tinge of lavender, blue, and orange coloring in some areas of the obverse when viewed at certain angles to the light. The reverse shows a bit more luster with toning that deepens to darker areas on the right side, along with some reeding marks. A few fine pin scratches on the obverse field account for the grade, but even with these minor shortcomings, I think this coin is a nice example of this well-known rarity.
⚙️ Coin Specifications and Information
Composition: Silver
Fineness: 0.9000
Weight: 26.9500g
ASW: 0.7800oz
Diameter: 38mm
Edge: Reeded
Alignment: ⬆️ ⬇️
Mintage: 201,000
KM# 168
📆 This Year in Philippine History
On August 6, 1906, the system of weights and measures were reformed and legalized in terms of the metric system, when the Philippine Commission Act No. 1519 was enacted.
A careful study of the matter by government experts in the Bureau of Science, found that the standard weight and capacity had become deplorably falsified and irregular. It was commonly said that the only reliable unit of measure was a "Standard Oil Can". The debasement and frauds practised fell heaviest upon the poorest purchasers and consumers. Thus, it was decided to standardize the native measures and adopt the international metric system.
The "kaban" was made exactly equal 75 liters. A "ganta" was made 3 liters. "Chupa" was made 375 thousandths of a liter.
Act No. 1519 took effect Janaury 1, 1907.
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đź“– Information sources:
Shafer, N. (1961). United States Territorial Coinage for the Philippine Islands. ‎Whitman Publishing Company.
Basso, Aldo P. (1975). Coins, Medals and Tokens of the Philippines 1728-1974 (2nd ed.). Bookman Printing House.
Guth, Ron. PCGS Coin Facts, 1906-S Peso (Regular Strike). Retrieved 19:15, September 19, 2021, from https://www.pcgs.com/coinfacts/coin/1906-s-peso/90386
Wikipedia contributors. (2020, June 2). Sheldon coin grading scale. In Wikipedia, The Free Encyclopedia. Retrieved 21:30, September 5, 2021, from https://en.wikipedia.org/w/index.php?title=Sheldon_coin_grading_scale&oldid=960391269
NGC, World Coin Price Guide, Philippines Coin Price Guide (Powered by NumisMaster), Retrieved 21:27, September 5, 2021, from https://www.ngccoin.com/price-guide/world/philippines-peso-km-172-1907-1912-cuid-1112357-duid-1518523
Numista Coin Catalog. Coins from Philippines. Retrieved 21:24, September 5, 2021, from https://en.numista.com/catalogue/pieces4349.html
Today in Philippine History, August 6, 1906, the system of weights and measures were reformed. Retrieved 9:37, August 12, 2021, https://kahimyang.com/kauswagan/articles/1505/today-in-philippine-history-august-6-1906-the-system-of-weights-and-measures-were-reformed