The History of Kellogg and Company
As the United States Mint in San Francisco was being completed and its opening was imminent, the few operating private gold firms ceased operations, anticipating that the public would demand the Mint’s coins rather than private coinage. Even the United States Assay Office ceased operations in 1853, as it expected its services to be assumed by the San Francisco Mint upon its opening.
By the end of 1853, the dominant locally produced coins in circulation were the $10, $20, and $50 issues of the U.S. Assay Office, along with a few remaining Moffatt & Company issues, alongside foreign and U.S. Mint gold coins.
John G. Kellogg, formerly of Curtis, Perry, and Ward, opened his own business in December 1853, with the support of many local merchants. Kellogg was originally from New York and had arrived in California as early as 1849. There, he worked for Moffat & Company and established a strong reputation. This led bankers and merchants to implore Kellogg to open a coining operation until the U.S. Mint began operations in San Francisco.
Early in February 1854, Kellogg & Company issued its first $20 gold coins, and Kellogg claimed he could strike them at a rate of $20,000 in face value per day. By April 3, 1854, the San Francisco Mint opened its doors, but it ceased production on numerous occasions during that first year due to shortages of alloys, chemicals, and skilled labor. However, there was no shortage of gold dust to be turned into coins. In 1855, the San Francisco Mint was operating, but the newly reorganized firm, now called Kellogg & Humbert after adding Augustus Humbert, struck additional $20 coins.
1854 Kellogg & Co. Gold Coins
The obverse depicted Liberty facing left, 13 six-pointed stars in the periphery, and the date below. Liberty’s headband is inscribed with “KELLOGG & CO”. The reverse has a heraldic eagle, a shield covering its body, 13 six-pointed stars in a circle on a field of rays, arrows in the talons, with “ SAN FRANCISCO CALIFORNIA – TWENTY D.” around the periphery.
The U.S. Mint began to address the coinage shortage, as did Kellogg and Company, whose coins were widely accepted in California. By 1855, despite ongoing problems at the San Francisco Mint, Kellogg & Co. was producing substantial quantities of $20 gold coins that supplemented Mint output. The 1,000 coins per day that Kellogg and Co. was originally able to strike had increased to $60-$80,000 in face value per day, 3-4 times its original capacity.
The coins struck in 1855 were identical to the 1854 specimens, except that the date on the obverse was changed to 1855.
But by December of 1855, the San Francisco Mint had resolved its problems and began to out-produce Kellogg & Company, which proved to be the death knell for the company. By 1860, the original partnership had dissolved, and Kellogg once again began an assaying business in San Francisco. That business lasted until 1866.
Kellogg died in 1886 and is best remembered for saving San Francisco’s financial community from ruin in 1853. Expand your collection today and shop other pre-1933 U.S. gold coins.
