HawaiiCoinage

America’s 50th state since 1959, Hawaii’s motto is Ua Mau Ke Ea O Ka Aina I Ka Pono (The
Life of the Land is Perpetuated in Righteousness). This group of Pacific islands became
known to the Western world when discovered by Captain James Cook of Great Britain in 1778.
The individual island states were then united in 1810 by the powerful King Kamehameha I. As
American missionaries and planters began arriving in Hawaii during the 1820s, a gradual
decline in the natives’ power and independence developed. By 1893, the Yankees exerted
enough influence to expel the old monarchy and establish the Republic of Hawaii. The islands
were annexed by the United States in 1898 and declared a U. S. territory two years later. In
1959, Hawaii finally achieved statehood, the only U. S. State not a part of the North American
continent.

The creation of large plantations and the adoption of a Western style economy beginning
about the 1820s created a demand for coined money. At first, this money consisted of coins
carried in from a variety of countries having interests in the islands. This source proved
unreliable, and coins were in chronically short supply. As dissatisfaction grew, King
Kamehameha III (1825-54) set out to rectify this shortage by including a provision for a
Hawaiian monetary system in his new legal code of 1846. This system provided for a unit
known as the dala, which was based on the American dollar. The dala was divided into 100
keneta, or cents. Several denominations of fractional silver coins were included in this
system, as well as a copper piece to be valued at one keneta.

Coining of the silver pieces required a two-thirds approval by the Privy Council, and these
issues were deferred while the monarchy addressed the more urgent demand for cents. The
Minister of Finance was directed to have the latter coined as quickly as possible. Through
Royal Agent James Jackson Jarvis, editor of the newspaper Polynesian, a contract was made
with the private minting facility of H.M. & E.I. Richards of Attleboro, Massachusetts, familiar to
American numismatists as a manufacturer of Hard Times tokens.

As prescribed by law, these copper pieces bore on their obverse
a facing portrait of Kamehameha III with his name and title KA MOI
(the King). Though coined in 1846, all examples were post-dated
1847 to coincide with their anticipated arrival in Hawaii. The reverse
of each coin featured two laurel boughs tied at their juncture to form
a wreath. Around this wreath was the legend AUPUNI HAWAII
(Kingdom of Hawaii). Within it was supposed to appear the
denomination HAPA HANELI (Money of 100), but Yankee diesinker
Edward Hulseman had mis-spelled it as HAPA HANERI. Adding to
this disappointment was the fact that the King’s portrait was
essentially unrecognizable. Taken together, these flaws caused
the natives to view this new money with disgust, and it was widely
rejected. There were rumors that many workers threw the coins in
the ocean rather than accept them as just payment for their labor.

It was originally anticipated that the 100,000 pieces included in this initial delivery were to be
just the first of many, yet the overwhelming rejection of the copper coinage meant that no more
would be struck. After 1862, the Hawaiian Treasury ceased disbursing the unwanted cents,
and a mere 11,595 pieces remained outstanding at that time. Though these coins ceased to
have legal tender status after 1884, examples were still seen in circulation for the simple
reason that no other coins of such low value were readily available. Their use came to a
complete end only when cents of the United States were imported at the turn of the century.

Scholar Walter Breen reported that two obverse dies and six reverse dies have been
identified, one of the reverses being known only from trial strikings in pewter. He further added
that a number of regular copper impressions remained with the descendants of the Richards
firm. These were acquired by dealer Wayte Raymond before 1956 and probably account for
most of the surviving Mint State examples.

No more coins were struck for the Kingdom of Hawaii until the 1880s. Under the farsighted
rule of the cosmopolitan King Kalakaua (1874-91), who sought to bring the islands up to
Western standards of development, representatives from various foreign mints were
interviewed on the subject of a contract coinage. This move alarmed sugar magnate Claus
Spreckels, whose influence in the islands made him a virtual second king. Certain that Hawaii
was vital to the interests of both himself and the United States, he persuaded Kalakaua to
have the desired silver coins struck by the USA to American standards. The latter provision
was a key selling point, as the use of standard USA coin planchets lowered the cost of this
coinage. For reasons not specified, the copper keneta was not included in this proposal, and
only silver pieces were ordered to a total of one million dala.

The master hubs and dies for this coinage were prepared by the United States Mint’s Chief
Engraver, Charles Barber. He worked from designs submitted by Spreckels and subsequently
modified by Mint Director Horatio C. Burchard. Six proof sets were struck at the Philadelphia
Mint in September of 1883, both to test the dies and to provide souvenirs for important figures
associated with the occasion. Some 20 more sets were produced in 1884 from the same
dies, and these were distributed to various Hawaiian dignitaries. None were offered to the
public.

The circulating coinage of Kalakau was executed at the San Francisco Mint between
November of 1883 and June of 1884, though all pieces bore the earlier date. The
denominations struck corresponded to those provided for in the law of 1846, with one
exception. The hapawalu, or eighth dollar, was excluded from regular production in favor of the
umi (ten) keneta, or dime. This move facilitated the use of standard USA silver planchets. The
eighth dollar, however, was included in the 20 proof sets struck at Philadelphia in 1884.

These silver coins were far more successful than their copper counterparts of an earlier
generation, and they remained in circulation after the American annexation of Hawaii in 1898.
They were gradually withdrawn thereafter and replaced with American coins of the regular
types. Retired pieces were returned to the USA and melted. As a result, all denominations are
fairly scarce in circulated grades and genuinely rare in Mint State. The sole exception is the
hapaha, or quarter dollar. Several Uncirculated rolls turned up after World War II, and these
coins are highly sought by collectors.

SPECIFICATIONS:

Keneta or cent 1847:
Diameter: 27 millimeters
Weight: approximately 9 grams
Composition: copper
Edge: plain
Number coined: 100,000
Net mintage after melting: 11,595+

Umi keneta or dime 1883:
Diameter: 17.9 millimeters
Weight: 2.5 grams
Composition: .900 silver, .100 copper
Edge: reeded
Number coined: 250,000 + 26 proofs
Net mintage after melting: 249,921

Hapawalu or eighth dollar 1883:
Diameter: 20.6 millimeters
Weight: 3.125 grams
Composition: .900 silver, .100 copper
Edge: reeded
Number coined: 20 proofs

Hapaha or quarter dollar 1883:
Diameter: 24.3 millimeters
Weight: 6.25 grams
Composition: .900 silver, .100 copper
Edge: reeded
Number coined: 500,000 + 26 proofs
Net mintage after melting: 242,600

Hapalua or half dollar 1883:
Diameter: 30.5 millimeters
Weight: 12.5 grams
Composition: .900 silver, .100 copper
Edge: reeded
Number coined: 700,000 + 26 proofs
Net mintage after melting: 87,755

Akahi dala or dollar 1883:
Diameter: 38.1 millimeters
Weight: 26.73 grams
Composition: .900 silver, .100 copper
Edge: reeded
Number coined: 500,000 + 26 proofs
Net mintage after melting: 46,348

From the NGC Photo Proof Series. Copyright © 2001 The Numismatic Guaranty Corporation.
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