 Even before 1848 , record amounts of gold were flowing to American mints to be struck into coin , but the California Gold Rush vastly increased these quantities . This renewed calls for a gold dollar , as well as for a higher denomination than the eagle ( $ 10 piece ) , then the largest gold coin . In January 1849 , McKay introduced a bill for a gold dollar , which was referred to his committee . There was much discussion in the press about the proposed coin ; one newspaper published a proposal for an annular gold dollar , that is , with a hole in the middle to increase its small diameter . McKay amended his legislation to provide for a double eagle ( $ 20 gold coin ) and wrote to Patterson , who replied stating that the annular gold dollar would not work , and neither would another proposal to have dollar piece consisting of a gold plug in a silver coin . Nevertheless , Gobrecht 's successor as chief engraver , James B. Longacre , prepared patterns , including some with a square hole in the middle . 
