(1849) $5 Oregon $5 Rolled Au Rest (Regular Strike)
From the Oregon Gold (1849) Series
Obverse & Reverse
The 1849 Oregon Exchange Company $5 gold piece, colloquially known as 'Beaver Money,' stands as a tangible relic of frontier ingenuity and the economic shockwaves of the California Gold Rush. In 1848, news of gold discovery to the south lured a significant portion of Oregon Territory's male population to the California gold fields. Many returned successful, but they brought back raw gold dust and nuggets, an unwieldy and insecure medium for commerce. The local economy, which had relied on a chaotic barter system of beaver skins, wheat, and foreign coins, was ill-equipped to handle this influx of wealth. Seeing a critical need, the Oregon Provisional Legislature passed an act on February 16, 1849, to establish a territorial mint. However, this was swiftly nullified upon the March 2nd arrival of the federally appointed governor, Joseph Lane, who declared the act unconstitutional as it infringed upon the federal government's sole right to coin money. Undeterred by this governmental roadblock, a consortium of eight prominent Oregon City citizens took matters into their own hands. This group, comprising William K. Kilborne, Theophilus Magruder, James Taylor, former provisional governor George Abernethy, William H. Wilson, William H. Rector, J.G. Campbell, and Noyes Smith, formed the Oregon Exchange Company. They established a private mint in a two-story building in Oregon City, improvising much of their equipment, including a rolling mill made from scrap iron and wagon tires. Using dies cut by Hamilton Campbell, a Methodist missionary, they began striking $5 and $10 gold coins between March and September 1849. The coins were intentionally struck from unalloyed, or 'native,' gold to inspire confidence, and were made overweight—containing about $5.50 worth of gold—to guarantee their acceptance. This over-valuation, however, ensured their eventual demise. The coins were widely accepted in commerce, not only in Oregon but also in California, facilitating trade and stabilizing the regional economy. Their success was short-lived; the minting operation ceased in September 1849 when their crucibles broke and key personnel returned to the gold fields. With the establishment of the San Francisco Mint in 1854, federal law mandated that all private coinage be turned in and melted. Because the 'Beaver' coins were worth more than their face value, the vast majority met this fate, making survivors exceptionally rare and numismatically significant as the only private coins ever minted in Oregon's history.
Associated EventCalifornia Gold Rush
Reason For MintingTo convert raw gold dust brought back from California into a standardized, reliable currency for local commerce where no official coinage was available.
Minter HistoryThe Oregon Exchange Company was a private enterprise founded in early 1849 by eight influential citizens of Oregon City: William K. Kilborne, Theophilus Magruder, James Taylor, George Abernethy, William H. Wilson, William H. Rector, J.G. Campbell, and Noyes Smith. Faced with a currency crisis and a federal veto against a public mint, these merchants and politicians pooled their resources to create a much-needed local coinage. Abernethy had served as the provisional governor, lending significant political weight to the venture. The technical aspects were handled by individuals like Hamilton Campbell, who engraved the dies for the $5 piece, and William H. Rector. The company operated for only about six months, ceasing operations in September 1849 due to equipment failure and the departure of key partners.
Historical SignificanceThe Oregon Exchange Company coinage was the first and only privately issued currency in the Oregon Territory's history. These 'Beaver' coins successfully stabilized the regional economy by providing a trusted medium of exchange, converting chaotic gold dust into a fungible asset and raising the effective price of gold from under $12 to $16 per ounce. Their high intrinsic value, while ensuring their acceptance, also led to their widespread melting, making them a classic rarity in American numismatics and a powerful symbol of frontier self-reliance.
K-1
Denomination$5
Minting Period1849
Assayer/MinterOregon Exchange Company
Geographic OriginOregon City, Oregon Territory
Obverse DescriptionThe central device is a rustic depiction of a beaver, a symbol of the Oregon fur trade, facing right on a log. Above the beaver are the initials of the eight company partners: K.M.T.A.W.R.G.S. Below the log is the abbreviation T.O. (an engraver's error for 'Oregon Territory'), and below that is the date, 1849, flanked by small branches.
Obverse InscriptionK.M.T.A.W.R.G.S. T.O. 1849
Reverse DescriptionThe reverse is purely textual. The periphery is inscribed with the issuer's name, 'OREGON EXCHANGE COMPANY'. The center contains a four-line inscription denoting the weight and composition: '130 G.' for 130 grains, 'NATIVE GOLD.', and the denomination '5 D.' for 5 Dollars.
Reverse InscriptionOREGON EXCHANGE COMPANY / 130 G. / NATIVE GOLD. / 5 D.
CompositionGold
Stated FinenessNative Gold (Unalloyed)
Actual FinenessThe coins were struck from raw, unrefined California gold without any added alloy, resulting in a high but variable purity. U.S. Mint assays confirmed their intrinsic value was about 8-10% above face value.
Weight8.42 grams
Diameter21.60 mm
EdgePlain
Approximately 6,000
Survival Estimate50-60
Rarity ScaleR-6
This issue is immensely popular as a quintessential Territorial gold piece, representing the only coinage ever struck in the Oregon Territory. Its crude, charming 'Beaver' design, compelling Gold Rush backstory, and extreme rarity make it a cornerstone for any serious collection of U.S. private gold.
Key VarietiesThere is only one primary variety, Kagin-1. Two significant die-cutting errors define this issue: the initial 'G' was used for Campbell instead of 'C', and the abbreviation 'T.O.' was used instead of the correct 'O.T.' for Oregon Territory. Both errors were corrected on the subsequent $10 issue. No original proof strikings are known. In the 20th century, the Eastern Oregon Mining Association (EOMA) produced restrikes from new dies to commemorate the originals; these are clearly marked as such and are numismatically distinct collector's items.
Authentication TipsOriginals have a soft, slightly yellow-gold appearance due to the lack of alloy. The strike is almost always weak, particularly on the beaver's fur and the peripheral lettering. The lettering style is crude and uneven. Counterfeits often appear too sharp or have incorrect luster. The weight and specific gravity are critical tests, as genuine pieces are unalloyed gold and overweight. The horizontal scratch between the 'G' in GOLD and 'G' in OREGON on the reverse of the finest known MS62 example serves as a useful pedigree marker for that specific coin. Buyers should rely on third-party certification from PCGS or NGC.
Shopping ConsiderationsA premium quality example for this issue is defined less by grade and more by the strength of the strike and originality of the surfaces. Look for a specimen with as much detail on the beaver's body and the log as possible, as these areas are typically flat. The soft, pure gold is highly susceptible to contact marks and surface impairment; coins that have avoided serious damage, cleaning, or tooling are very rare and command strong premiums. Original, undisturbed skin with a hint of reddish-gold toning is highly desirable. Avoid examples that have been used as jewelry, evidenced by solder marks or filled holes, which is a common fate for these historic pieces.
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 TypesAll original 1849 Oregon $5 coins were struck as business strikes for circulation and are graded on the Circulated (PO-1 to AU-58) and Mint State (MS-60 to 70) scales. The vast majority of survivors are in circulated grades, typically VF and XF. Mint State examples are exceedingly rare, with only a few known. No proofs were struck during the original period of issue. Later commemorative restrikes exist but are entirely separate numismatic items and should not be confused with original business strikes.
Mint State CharacteristicsUncirculated examples are legendary rarities. An MS specimen would be defined by remaining mint luster, though due to the soft, unalloyed gold, the luster is typically satiny rather than flashy. Strike is a major issue; even the finest known MS-62 example shows some softness in the peripheral letters. The pure gold composition makes the surfaces very susceptible to contact marks, so even a high-grade piece will likely exhibit scattered light abrasions from mint handling and brief circulation. A 'full beaver' with clear fur detail is exceptionally rare and desirable.
Circulated Wear PatternsWear first appears on the highest points of the design: the beaver's back, head, and the upper portion of the log on the obverse. On the reverse, the letters in the center ('NATIVE GOLD') and the outer legend will show initial friction and loss of detail. On lower-grade examples (Fine and below), the beaver becomes a faint outline and the peripheral initials on the obverse and the issuer's name on the reverse begin to merge with the fields.
Key Factors For ValueFor the 1849 Oregon $5, value is driven by four main factors. First is grade and surface preservation; an example with minimal marks and no evidence of cleaning or repair is paramount. Second is the sharpness of the strike, with a premium for coins showing unusual detail on the central beaver design. Third is eye appeal; coins with a pleasing, original color command more than dull or obviously cleaned specimens. Finally, certification by a top-tier service (PCGS or NGC) is essential for authenticity and market acceptance, with a CAC sticker adding a significant premium for pieces considered high-end for their grade.