What is the term for this? I've seen it with hobo nickels but I don't know what you call them with other coins. Is this just something someone did or is this part of a larger trend? I'm guessing it involves the Franco-Prussian War maybe.
Yes it involves the Franco-Prussian war and mocks Napoleon's surrender at the Battle of Sedan in 1870.
There are plenty of these satirical pieces. Some are actual coins that got modified (and I think yours is one of those), others were made by third parties and have inscriptions such as "Vampire de la France" (instead of "Empire Français"). Around the portrait you see "Napoléon III Le Petit" or "Napoléon III Le Miserable - 80,000 Prisonniers" ... http://hillsdaledigital.cdmhost.com/cdm/ref/collection/p4030coll6/id/341 (one example, with some background info in English) http://www.mcsearch.info/search.html?search=similar:454038 (more pieces like this) Christian