1. Historical Context
In 1949, China was in the midst of a full-blown civil war. The Nationalist government of the Kuomintang, led by Chiang Kai-shek, was in dire straits facing the communist troops of Mao Zedong.
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The Chinese economy was collapsing, and paper money (the Yuan) was experiencing hyperinflation. No one wanted it anymore.
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To pay the troops and attempt to stabilize the economy, the government desperately needed silver coinage (hard currency).
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In China at that time, the most trusted coin for trade—and had been for decades—was the Mexican Peso (known as the "Eagle Dollar" due to the eagle on its obverse).
2. The 1949 Operation
The Nationalist government requested assistance from the United States and Mexico to obtain these coins.
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The "1898" Date: Since the Chinese people trusted "old" pesos, it was decided not to strike coins with a modern date (1949), but to use dies from a year reputed for its high silver content. The date 1898 was chosen.
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The Minting: A massive quantity of these coins was struck urgently (over 10 million pieces). Unusually, the Mexico City Mint (Casa de Moneda) could not produce the entire order alone. Therefore, it subcontracted part of the production to the San Francisco Mint in the United States.
3. How to Identify Them?
Although they bear the date 1898, these 1949 coins are not identical to the originals. Collectors distinguish them using a few technical details (called diagnostics):
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Mint Mark Alignment: On the 1898 originals, the small "o" in "Mo" (the Mexico City Mint symbol) is generally aligned with the top of the "M". On the 1949 restrikes, the "o" is often positioned slightly higher than the "M".
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The Denticles (Rim): There is often a difference in the number or spacing of the small teeth on the coin's border (for example, 139 denticles for the original versus 134 for the San Francisco restrike).
