The History of an under rated U.S. coin

The History of an under rated U.S. coin



I can think of several U.S. coins that are so called under rated. These coins for whatever reason have been have not been embraced as collectables as other U.S. coins and denominations.

Thought out the history of the United States coins have been struck for various reasons. The concept of a five cent coin has been around for many years. It started with a half dime.

To us of the baby boomers age the modern nickel for the most part began only 100 years before our time.... The US half dime was first minted in 1794 .It was coined in .8924 silver .1076 copper was 16.5 in diameters, and weighted 1.35 grams. These were the flowing hair variety, after two years in {1796 -1797} a newer Draped bust coin was introduced. Followed by the Heraldic Eagle Reverse{ 1800-1805} ,the Capped Bust{ 1829-1837,} to the Seated Liberty half dime series{ 1837-1873}.

The seated series had many changes to its appearance as well to its weight. The fact that these little coins were made of a silver copper alloy made them out live their usefulness. As most were hoarded by the common man during the Civil war era.

The true beginning of the five cent coin does not start completely at the Civil war era, as it began in some ways back to the Revolution war era.

Colonist were relatively poor, they have very little or no hard cash [Silver, or gold] the public mostly relied on Spanish coinage. Half, one, two, four, and eight Reales were for the most part relatively common.

At that time the half Reale was worth around 6.5 cents. During that time frame most items sold were priced up to the early 1850’s at 6.25-12.5 cents the value of a one Reale. As the half Reale was a coin used by most in that time congress in 1792 came up with a law introducing the dime and half dime. Thus the first true five cent piece was coined.

By the mid 1800’s the half dime became a staple of society. It was very useful to the poorer elements as they again had no real supply of hard cash in large denominations. By the late 1850’s there coinage had picked up and half dimes were very prevalent in the market place.

Now we enter the 1860’s the coming of the Civil war. The situation changed very quickly as the silver coinage seen in the mid 1840’s to 1859 now seemed to be drying up. With the news of the war most Northerners started to hoard all the gold coins they could. In late June of 1862 it was silvers turn to disappear from circulation. Even copper coinage started to dry up, and the public had little or no trust for paper notes printed.

By the summer of 1863 most all US struck coinage was seldom seen in daily use. What did circulate was tokens. As we know today as Civil war tokens. The director of the mint James Pollock saw that these bronze tokens stayed in use, and his cents did not.

He went before congress asking if they would allow him to strike Bronze cents as well as a two cent piece. Now Pollock tried to push this through, it took him several months to accomplish. He was running into road blocks. His biggest was a man named Joseph Wharton. Wharton had plenty of allies in congress. His plan was to block the law introducing the bronze coinage, his reason; he owned and operated a nickel mine. He wanted to keep his government contracts in place with the US government as well as export his ore to other countries.

In the spring of 1864 with the election coming Lincoln Administration put all its weight behind a new coinage law, nickel was out, and bronze was in. Wharton had a lot of support in congress,he pressured his contacts to introduce a bill for him. His idea was a nickel three cent piece. Now there was already a silver 3 cent piece in circulation. However they weren’t being struck due to the war, and not found in circulation.

Now this new coin struck everyone’s fancy, the bill was passed and Lincoln signed it into law in March of 1865. Now Wharton three cent coin bill passing so easy he had other plans to sell the government more nickel. He came up with the idea of a five cent coin using the same composition of nickel and copper.

With no surprise in May 0f 1866 congress passed another bill and the birth of the first true nickel became law. He then tried again to have yet another law passed for a ten cent nickel copper alloy coin minted. He was shot down as the mint said it would be too hard to coin a dime out of that alloy.

What’s even more surprising is that the mint director {Pollock} was persuaded to give his blessing to the new five cent coin. He was lead to believe that soon after that the new five cent Nickel coin would be abolished and the monetary system would return to the silver half dime. Now history shows us he was lead wrong, as just the opposite happen, and the half dime was abolished in 1873.

By now most of you know where I’m going with this yes the birth of the first nickel…”the Shield Nickel”.

One of the least collected coins in our hobby today. Well read on and learn the rest of the story. Now the new nickel weighed 77.16 grains a very odd number until you realize that this amount is equal to 5 grams. Now what’s even stranger that during this time there was a push for the US to convert to the metric system. With the five grams weight it was said that the coin could be used to be a weight to weight items. However no one used in the U.S. used a system to weight items on the metric scale, and this was more or less fell by the side.

Now the Treasury dept. decided to make the new coin 20 mm diameters. But the mint had engraver James B. Longacre to design the new nickel. The first design was nothing less than a obverse copy of his 1864 two cent coin. The design was of an American shield topped with a cross pattée. Sort of a cross used by the Knights Templar. The words “In God We Trust” graced the top of the coin. The bottom of the design had the arrows crossing, and to what I like to believe a set of eagles talons. As these hook like items to the left and right of the ball to my know age have no name. Now as for the reverse Longacre choose a set of 13 stars divided by rays. A large 5 in the center of the coin, the rays were used for striking the year 1866 and half of 1867. One major reason to remove these rays was the fact it was harder to strike the coin with the rays on the die. However another reason was a rumor that the rays

and stars were a secret sympathy symbol for the South being recently defeated. “And for the most part resembled the “stars and bars” of the Confederate flag.”

Now I must also explain that there were two other patterns designed for the new nickel. The first a head of George Washington another that had the effigy of Lincoln, the Lincoln design was dismissed as the government thought the coin would not be well received below the Mason –Dixon line.

Now one has to admit this coin for being under rated has quite a bit of History behind it. The coins were very heavily minted in the first years. It was intended to force out coinage into a system that was lacking hard money. These were intended to be the working class work horse. As in 1866 was a lot of money during that time period. As an example a five cent coin buying power in 1866 is equal to around $1.20.5 cent in today’s money. Now a dollar twenty does not sound like a lot but consider that the average person at that time period did not make more than a dollar a month.

In 1866 as I stated the mintage was up there over 14 million coins produced, in 1867 over 2 million with the rays on the obverse were struck and add to that another 28plus million of the coin with the rays removed. 1868 another 28 plus million was minted, followed by 1869 with 16 plus million minted. By the 1870’s production began to slow down. In1870 just over 4 million, 71 just over a half million. 1872 the mintage went up to over another 6 plus million. In 1873 two varieties came from the mint a open 3 and a closed 3 the combined mintage was a little over 4.5 million coins. Now as the need for these coins became less, the mint slowed down the mintage's. By the mid 1870’s [74,75,76] , the mintage's dropped to the 2 to 3 million mark. In 1877 and 78 there were no business strikes minted! Only Proof coins were struck in 77 and 78 with only 510 in 77 minted and 2350 in 78. 1879 saw 25900 business strikes minted. 1880 only 16,000. In 1881 the mint picked up production 68,800 . then comes 1882 where over 11 million again were struck. In 1883 the last year for this series only 1.4 million were produced.

Now that you know some of the history of this under rated coin and share the know age of the mintage's one can may appreciate this coin a tad bit more.

But for one to understand it totally one must examine a shield nickel. I have told you its history and its composition. Its size, and the need to force out coinage to the public for trade. Now here is why I enjoy collecting this coin so much. First they are very easy found. I can bet you at just about any coin show you can find these to pick through. Next with the inventory being so vast you can find varieties. In many books I have read about the shield nickels you’ll find a vast list of varieties. You just about can find any type a variety except an RPM as none of these gems ever had a mint mark, although they all were coined in Philadelphia. The next thing you’ll notice is that they are reasonable since the inventories are plentiful and the demand is low “except for the lower minted years” prices for the most part range from a few dollars up.{ Again depending on condition and mintage's. } But if you’re the type who like to find something different and love varieties this is the coin for you.

There are quite a few varieties listed in Shield Nickels. However there are even more that have not yet been discovered. I’m quite sure there are a lot of these coins varieties lost, as there are tons of them so worn out that you can’t make out any more that yes it is a Shield nickel.

Yes maybe a down side they are not made of a medal that is of higher value, such as silver. However their history, design and the secrets they hold makes shields so worth collecting. In the Cherry pickers guide and this is an older guide I’m referring to [5th ed. Vol 1] 2009 copy right there are 69 pages of varieties listed. I’m sure there even more then that if this text was up dated. I did not even get into the reverse varieties. As there are four Hub reverses Hub I ,Hub IIa ,Hub IIb, and Hub IIc. In the year 1868 there are 6 different hub reverses varieties. Account for only 2,900,000 estimated varieties alone.

As I stated in the beginning of this thread the nickel has only been around for a short time,149 years ,we are only talking maybe two and a half generations! When I hold a shield nickel and for that matter any coin I always ask myself where have you been? Who has owned you, who have spent you? Where you in a paper boys pocket? Did you buy a sailor, or solider a beer? What mysteries do you hold and what stories can you tell me?

Who would have guessed as a mint worker in the early days there would be people like us collectors looking closely at their work. Money was to be used not collected.

Now I hope you have enjoyed this write up. I hope it made you appreciate the 5 cent piece or “nickel” a bit more no matter if it’s a Shield nickel, Liberty, Buffalo, or Jefferson. I know as collectors we all tend to collect what we fancy. I also realize that we as collectors do tend to agree and disagree a lot. However there’s one thread that binds us all together. This thread cannot be cut, as there’s no tool that has been invented that can break the bond of collecting shinny medal objects we know as coins.

 

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nice write up

 

We agree !
Paddy54 one good write up.

 

Nice write up Paddy. Who doesn't like a nice shield nickel variety.

 

Here's are a few varieties one mite find while cherry picking Shields.
The first is a new variety discovery by me this year. Listed as an S2-3011 1868 rev of 68 . Notice on the rev. that the C and S in cents are broken letters. This makes it a variety #1 of the 6 types of hub IIb varieties of the 1868 shield nickel. So my new discovery is a sub set of the # 1 variety for this year.

 

This next 1868 nickel a member here should remember this coin an RPD F-26 in Au.

 

Here's an example of an 1867 DDO

 

an example of an 1869 missing leaf variety. BTW This coin was purchased for $12

 

another cool 1869 RPD

 

and a new find an 1883/2 the rule breaker Variety. in Unc. a $49.00 purchase and over a $1000 value!

 

Thanks for the history lesson Paddy. I really enjoyed the write up and learned something new.

Dave

 

Rats!

I just realized this is Paddy's post.


How do I 'unlike' or hate this post?

I can't be nice to him!

 

You better hope Doug don't give me a like for this post....that would really frost your cookies!

 

@Paddy54
Frost hex soild Ice on that Like.

 

You have the same chance as a snowball's chance in -- well you know where.

 

So now you're blaming Doug for global warming ?

 

Why not, he blames me for everything else!

 

Nice write up @Paddy54 . I am going to look for a 1866-67 Shield nickel with rays at the next coin show. I like the coin and the added mystery to the origin of the stars and rays. The no rays would make for a nice compliment.

 

Nice article!

Knights Templar in America?
Mort Reed was a long-time columnist for Coin World and newspapers.
In 1969, in his "Money Clips" newspaper column, he answered a question about religious symbols on US coins with, referring to Longacre's five-cent design:
"His shield for the nickel so closely resembled that on his two-cent piece that he probably topped it off with a cross affair just to make it look different".

 

At shows, i could imagine the dealers "hiding" their bargain bin of nickels when they see you strolling the bourse floor towards their table!!! Mumbling to themselves " oh no, here comes the guy that bought the $2000 nickel for $2"
J/K...... well, sorta..... anyway great write-up!
You da man when it comes to nick-nacks!!