Jefferson Nickels Reverse of 38 vs Reverse of 40

In the early part of 1939, the mint changed the reverse design of the Jefferson Nickel by strengthening the steps of Monticello. As a result, the Jefferson Nickels generated from each mint (P-D-S) in 1939 produced examples with the original step design from 1938 and the new design, which was designated the Reverse of 1940. Identifying the differences between the Reverse of 1938 vs the Reverse of 1940 is a problematic for many Jefferson Nickel collectors. The purpose of this article is to both describe and show the key differences in the two reverse designs so that the readers can understand and correctly apply the knowledge.

The Reverse of 1938 is often described as having "wavy" steps. A description that seems vague until you actually view a Jefferson Nickel with a reverse of 1938. In essence, the steps do not appear to have the same thickness and the inevitable presence of "bridges" even in Full Step examples exacerbates the effect. In addition, the steps do not have a defined start and end making some steps appear longer than others.

The design change in 1939 corrected the striking problems. The Reverse of 1940 displays a vertical indentation on both sides of the steps which serves as a consistent start and end to the steps. This is probably the easiest feature of the new design to both see and use to attribute the correct reverse. Another change was that the top step was thickened in an attempt to represent the porch rather than an actual step. Lastly, the steps are even, distinct, and well defined and no longer appear wavy.

The photo below shows 3 different photos of each Reverse design in order to clearly illustrate the differences between the two reverses. Please note that the top photo of the Reverse of 38 is actually considered full steps while the other two photos are of non full step coins. All of the coins with the reverse of 1940 are full step coins.

Reverse of 1938 vs Reverse of 1940​

Some might argue that it is not necessary to have the knowledge to make such attributions since the TPG's will make them for you. And while that theory may be correct for new submissions, consider the following two factors. First, the TPG's can and to make mistakes. Second, the TPG's did not recognize the difference between the two reverses during the early years of their existence. The result is that there are many 1939 Jefferson Nickels out there in early generation slabs with no reverse attribution at all on the TPG label. Examine the three photos below. The first two show newer generation slabs from both PCGS & NGC with the proper Reverse attribution on the label. The last is an old NGC no-line fattie holder (generation 5 circa 1992-1995). Please note that there is no designation for either reverse on the slab. But after reading this article, and viewing the two coins above it, even a casual glance should give you the answer.

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Since the 1939-D is essentially the recognized key date for the Jefferson series, understanding the differences between the two reverses is extremely important. Technically, the 1950-D has the lowest mintage but BU rolls were hoarded, and the issue actually very common in mint state condition. It is also important to consider that distribution of which reverses were used by each mint vary greatly. The Philadelphia mint generated a whopping 120 million nickels in 1939 but only about 10% (12 million) were with the reverse of 1938. Of those, only 1 in 400 had full steps leaving only about 30 thousand.

The Denver mint only produced 3.5 million nickels, which is the lowest mintage behind the aforementioned 1950-D. Additionally, only 25% of those were minted with the reverse of 1938 yielding 875 thousand 1939-D Jefferson Nickels with a Reverse of 1938. Finding a 1939-D in premium gem is difficult (see photo below), but finding a full step example is rare due to the fact that only about 1 of 150 had full steps taking the starting population down to 5,800 coins.

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The mintage in San Francisco was 6.6 million and the reverse usage was almost 50/50 with the Reverse of 1938 having a slight advantage. Finding a full step Reverse of 1938 is also easier for the S mint Jeffersons at 1 in 100 leaving us with 33,000 coins. Given that 10% of the 1939-S Reverse of 1940 have full steps, one would think that finding one would be rather easy since we started with 330,000 coins. As of December 2011, the total NGC/PCGS population of the 1939-S Reverse of 40 MS65 FS is 48/17. Compare that to the total population of the 1939-S Reverse of 38 MS65 FS is 51/17. The populations are almost identical despite the fact that the Reverse of 40 had 10X as many coins to start.

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I have been an avid collector of Jefferson Nickels for almost a decade. The only 1939 issue that I have ever had trouble finding an attractive example in gem state is the 1939-S Reverse of 1940. Consider that there are only 177 (12/2011) MS65 or better 1939-S Reverse of 40 coins graded by both NGC & PCGS and that includes both full step and non full step examples. To give an idea of the rarity of the 1939-S Rev of 40, the current populations (12/2011) of the 1939-D Rev of 38 MS67 and 1939-S Rev of 38 MS67 are 322/0 and 104/0 respectively for non full step examples. I submit that real key date of the Jefferson Nickel series is the 1939-S Reverse of 1940.

In summary, there are three key differences between the Reverse of 1938 vs Reverse of 1940:

1. Wavy Steps for 1938 vs Well Defined Steps for 1940
2. A vertical indentation to start & end the steps on the Reverse of 1940
3. The Reverse of 1940 has a thicker top step

It is important to know these differences because there are many certified 1939 Jefferson Nickels in TPG holders that are not properly attributed on the label. Due to the distribution of the reverse design mintages, the reverse design can significantly affect the price of the coin. It is my sincere hope that anyone who reads this article will gain the requisite knowledge needed to understand the complexities of the 1939 Jefferson Nickels.

 

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Great great info... Thanks!

 

Impressive. I know you've done a write-up on this before, and I found it just as informative the second time around.

I'm no Jefferson expert but reading threads like this are certainly getting me there. Thanks for the very informative thread!

 

Bump.

Very informative and well written. Thanks Paul. More folks need to read this!

 

Yes, it was a great read. This is the kind of info. that I like reading and will help me be a better collector in the long run.

 

Thank you and very informative. I need to go pull out my old Jefferson collection from the closet and find my loupe!

 

The two best references for the Jefferson series are:

THE JEFFERSON ANALYST by Bernard Nagengast
A GUIDE BOOK OF BUFFALO AND JEFFERSON NICKELS by Q. David Bowers

 

Thanks I will give those a look..

 

Speaking of Nagengast, I think it is important to note his definition for 5 full steps for the reverse of 38:

While discerning the Reverse of 38 from 40 may be difficult for some collectors, determining full steps of the Reverse of 38 is what I consider the most difficult concept to grasp in the entire series. Here is an example of a 5FS Reverse of 38, my 1938-D NGC MS67 5FS.




With the reverse of 40, you look for uninterrupted lines to determine full steps. For the Reverse of 38 you look for the raised portion, the actual step. It is harder to see, and much more dependent upon subjective interpretation. Furthermore, both bridges and light marks are acceptable as can be seen by the example provided above.

 

So, with that definition of a full step 38 what would you consider this 38P to be?

 

Personally, I would give that coin 5FS but I think there are some who would not based on the weakness under the third pillar. The mark in between the first and second pillar is shallow and will not affect the designation. The key is the fifth step under the third pillar. But as Nagengast clearly states, it is about the overall definition of the steps. IMO, that good has great overall definition despite the fact that one might argue that the weakness under the third pillar should preclude the designation.

 

I think it might possibly go 5FS. But I see that bit of weakness under that third pillar. I think it looks pretty decent overall.

 

Here is another example of a Jefferson Nickel with a Reverse of 38 and full steps.

 

What a GREAT write up Lehigh!! And I might add the coins your showing are amazing examples. Thanks for all the info....Joe

 

What do you think of this one ? Sorry, I still don't know how to enlarge the pictures.

 

I'll go with MS65+
Pretty nickel.

 

Yeah it is. Could not resist this picking this up.

 

I wanted to mention, for those who really aren't sure... The '+' addition to a grade for PCGS actually means it is at the high end of the grade. A lot of people, including myself, generally think/thought it means 'outstanding eye appeal'.
Frankly, I really don't think it's necessary. I guess the 70 different grades weren't enough for PCGS.

 

You are correct and I did offer a " Premium " bid for this. So here he sits.

 

I have a sneaky suspicion that that nickel looks even more glorious in hand. I bet the color and luster are popping.