1791-So DA Chile 2 Reales Carlos IIII legend, bust of Carlos III portrait type

Specifications:
6.767 g, .8960 fine, .1949 troy oz (actual silver weight)
Recorded mintage: 54,000 (includes Carlos IV legend KM 37)
Catalog reference: KM 59

Details:
Struck in 1791 at Santiago, this Chilean 2 Reales belongs to a period when the Chile mint operated on a far smaller scale than the major silver-producing centers of Upper Peru, as evidenced by the tiny 54,000 mintage of this example. Established in the mid-eighteenth century to reduce dependence on coin shipments from Lima and to provide a stable supply of currency for local use, the Santiago mint converted limited regional silver production and imported bullion into circulating coinage intended primarily for everyday exchange. Smaller denominations such as the 2 Reales were essential in local markets, mining districts, and coastal trade, where reliable fractional silver had long been in short supply and where the needs of circulation differed from the large export-oriented output of mints such as Potosí. Coins of this type still might eventually enter Pacific trade through consolidation with larger payments moving north to Lima or Acapulco, where Spanish-American silver formed part of the bullion and coin shipments carried across the Pacific by the Manila galleons

This issue reflects an unusual circumstance created by the change of monarch from Carlos III to Carlos IIII in 1788. Although the legend was updated to name the new king, the portrait used on early issues continued to depict the earlier bust of Carlos III. The delay resulted from the practical realities of colonial minting, as new portrait models and dies required approval in Spain and time to reach distant mints, and smaller operations such as Santiago were less likely to suspend production while awaiting replacements. The result was a temporary mismatch in which the name of the reigning monarch appeared alongside the portrait of his predecessor.

Notable chopmarks:

禾 - hé - grain, cereal

克 - kè - overcome, gram, can

辛 - xīn - bitter, painful

峦 - luán - mountain range

Provenance:
Purchased on eBay in September 2017 from a seller in Colorado, United States