(1849) $5 Oregon $5 WM Restrike 6.42 grams (Regular Strike)
From the Oregon Gold (1849) Series
Obverse & Reverse
The Oregon Exchange Company's 'Beaver Money' emerged from a crucible of economic necessity and geographic isolation. Following the discovery of gold in California in 1848, a significant portion of Oregon Territory's male population rushed south, returning with gold dust but finding no reliable medium of exchange back home. The local economy was crippled, relying on an unstable barter system of wheat and beaver pelts, or dealing with the powerful Hudson's Bay Company, which monopolistically set gold dust prices far below the California standard—often as low as $11 per ounce compared to $16 in San Francisco. Recognizing the dire need for a standardized currency to stabilize commerce, the Provisional Legislature of Oregon passed an act on February 16, 1849, to establish a territorial mint. However, this was immediately rendered void by the arrival of the newly appointed territorial governor, Joseph Lane, on March 2, who declared the act unconstitutional, as only the federal government held the power to coin money. In a classic act of frontier ingenuity and defiance, a private consortium of eight prominent Oregon City citizens formed the Oregon Exchange Company to undertake what the government could not. The partners included former Provisional Governor George Abernethy, William K. Kilborne, Theophilus Magruder, James Taylor, William H. Willson, William H. Rector, John G. Campbell, and Noyes Smith. Using crude, improvised machinery, including a rolling mill fashioned from discarded wagon tires, they began striking coins in March 1849. The resulting $5 and $10 gold pieces, made from unalloyed 'native gold,' were intentionally struck with a higher gold content than their U.S. counterparts to ensure public acceptance. This strategy worked, and Beaver Money was readily accepted, revitalizing the region's economy. The mint's operation was short-lived, ceasing in September 1849 after its crucibles broke and key members decided to return to the gold fields. With the establishment of the San Francisco Mint in 1854, most Beaver coins were turned in, melted for their premium gold content, and lost to history, rendering the surviving examples profound and rare artifacts of American territorial expansion.
Associated EventCalifornia Gold Rush and Oregon's Economic Isolation
Reason For MintingTo create a stable medium of exchange for the Oregon Territory, where a lack of official currency and undervalued gold dust hampered commerce.
Minter HistoryThe Oregon Exchange Company was a private enterprise founded by eight influential residents of Oregon City in 1849. The members were George Abernethy, William K. Kilborne, Theophilus Magruder, James Taylor, William H. Willson, William H. Rector, John G. Campbell, and Noyes Smith. Faced with a crippled economy, they established a private mint after the new territorial governor nullified plans for a government-run mint. Operating for less than six months, they successfully produced the first and only coins struck in Oregon, which became vital to the region's commerce before sufficient U.S. coinage became available.
Historical SignificanceThe Oregon 'Beaver' coinage is a quintessential example of territorial ingenuity and necessity. It represents a successful private effort to create a trusted currency in the absence of federal infrastructure, stabilizing a regional economy and breaking the trade monopoly of the Hudson's Bay Company. These coins are among the most famous and historically significant U.S. territorial issues.
K-1
Denomination$5
Minting Period1849
Assayer/MinterOregon Exchange Company
Geographic OriginOregon City, Oregon Territory
Obverse DescriptionFeatures a prominent, somewhat naive depiction of a beaver standing on a log. Above the beaver is an arc of initials representing the partners of the Oregon Exchange Company. Below the beaver are the initials for 'Territory of Oregon' and the date, 1849, flanked by branches.
Obverse InscriptionK.M.T.A.W.R.G.S. / T.O. / 1849
Reverse DescriptionThe central device consists of the inscriptions '130 G.' for 130 grains, 'NATIVE GOLD.', and '5 D.' for 5 Dollars, arranged in three lines. This is encircled by the company's name.
Reverse InscriptionOREGON EXCHANGE COMPANY / 130 G. NATIVE GOLD. 5 D.
CompositionGold
Stated FinenessUnalloyed 'Native Gold'
Actual FinenessApproximately .870 to .880 fine, though it varies as the gold was unrefined.
Weight8.42 grams
Diameter22.50 mm
EdgePlain
Approximately 6,000
Survival EstimateFewer than 75 known
Rarity ScaleR-5
This coin's appeal lies in its romantic history, crude but charming design, extreme rarity, and its status as the first coin struck in the Pacific Northwest. It is a cornerstone piece for any serious collector of U.S. territorial or pioneer gold.
Key VarietiesThe original 1849 Oregon $5 (K-1) has two notable die-engraving errors: the initials 'T.O.' for Territory of Oregon are reversed (corrected to 'O.T.' on the later $10 coin), and the initial for partner John Campbell was erroneously engraved as a 'G'. No major varieties of the original exist. In modern times, several restrikes or commemorative tokens have been produced. The most well-known are the restrikes produced in the 1990s by the Eastern Oregon Mining Association (EOMA). These were struck in .999 fine gold, weigh 7.8 grams (1/4 troy ounce), and were part of a limited mintage of 6,000 pieces. **The 'WM Restrike' weighing '6.42 grams' specified in the user's query is not a known or cataloged variety in major numismatic references such as Kagin. It is likely a more modern, private issue or token whose 'WM' mintmark and specific weight do not correspond to any official or widely recognized restrike program.**
Authentication TipsOriginals are crudely struck on unrefined gold, often appearing porous or grainy. The lettering is uneven and shallow, especially on the reverse. Most known examples are well-worn. Counterfeits may appear too sharp, have incorrect weight, or be made of a gold alloy that does not match the color and composition of native Oregon gold. The unique die characteristics, including the specific placement and shape of the letters and the beaver, are critical for authentication.
Shopping ConsiderationsFor an original K-1, a premium quality example is one that retains strong details for its grade, especially on the beaver's fur and the reverse inscriptions, which were often weakly struck. Original, uncleaned surfaces with a reddish-gold or greenish-gold patina are highly desirable. Avoid examples that have been harshly cleaned, polished, or repaired (such as ex-jewelry pieces with removed mounts). Any surviving mint luster is exceptionally rare and commands a significant premium. Given the issue's rarity, even well-worn but problem-free examples are highly sought after.
A coin's grade is its condition, rated on a 1-70 scale. For rare coins, this is the most critical factor in determining value, as a tiny difference in preservation can mean a huge difference in price.
Relevant Grade TypesOriginal 1849 issues were business strikes intended for circulation and are found in Circulated (1-58) and, very rarely, Mint State (MS, 60-70) grades. No Proofs were struck during the original minting period. Modern items described as 'restrikes' or 'tokens' are entirely separate numismatic products; some, like the EOMA issues, were struck in Proof finish for collectors and are graded with a PR or PF prefix.
Mint State CharacteristicsA true Mint State Oregon $5 is exceedingly rare. It would exhibit some original mint luster, likely with a soft, satiny texture rather than a hard, frosty one. Due to the crude manufacturing process, even uncirculated examples will have a weak strike in areas, particularly the center of the reverse. Planchet quality is poor by federal mint standards, so some natural striations or granularity are to be expected. Contact marks from handling are common due to the soft, unalloyed gold.
Circulated Wear PatternsWear first appears on the highest points: the beaver's shoulder, hip, and tail. The initials above the beaver and the date below are also high points. On the reverse, the letters of 'OREGON EXCHANGE COMPANY' and the central denomination inscriptions will show initial flatness. In lower grades (VG and below), the beaver becomes heavily outlined, losing internal detail, and the legends become difficult to read.
Key Factors For ValueFor an original coin, rarity and historical demand are primary drivers. Value is then determined by grade and surface quality. An example with original, undisturbed surfaces ('original skin') is far more valuable than a cleaned or polished one of the same grade. Strike sharpness is also key; a coin with a bolder-than-average strike on the beaver and reverse will command a premium. Eye appeal, encompassing attractive color and minimal distracting marks, is paramount. A CAC sticker for this issue is highly significant, indicating premium quality for the assigned grade.