Shield nickel

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Shield nickel
United States
Value5 cents (0.05 US dollars)
Mass5.000 g (0.1615 troy oz)
Diameter20.50 mm (0.8077 in)
EdgePlain
Composition
Years of minting1866–1883
Obverse
DesignShield representing the United States
DesignerJames B. Longacre
Design date1866
Reverse
DesignDenomination surrounded by stars, separated by rays
DesignerJames B. Longacre
Design date1866
Design discontinued1867
DesignDenomination surrounded by stars, rays removed
DesignerJames B. Longacre
Design date1867
Design discontinued1883

The Shield nickel was the first

copper-nickel, the same alloy of which American nickels are struck today. Designed by James B. Longacre, the coin was issued from 1866 until 1883, when it was replaced by the Liberty Head nickel. The coin takes its name from the motif on its obverse, and was the first five-cent coin referred to as a "nickel"—silver pieces of that denomination had been known as half dimes
.

Silver half dimes had been struck from the early days of the United States Mint in the late 18th century. Those disappeared from circulation, along with most other coins, in the economic turmoil of the Civil War. In 1864, the Mint successfully introduced low-denomination coins, whose intrinsic worth did not approach their face value. Industrialist Joseph Wharton advocated coins containing nickel—a metal in which he had significant financial interests. When the Mint proposed a copper-nickel five-cent piece, Congress required that the coin be heavier than the Mint had suggested, allowing Wharton to sell more of the metal to the government.

Longacre's design was based on his

reverse, or tails, design was modified in 1867. Even so, production difficulties continued, causing many minor varieties which are collected today. Minting of the Shield nickel for circulation was suspended in 1876 for a period of over two years due to a glut of low-denomination coinage and it was struck in only small quantities until 1882. The following year, the coin was replaced by Charles E. Barber
's Liberty head design.

Background and authorization

Five-cent pieces had been struck by the United States Mint since 1792. They were the first coins struck by Mint authorities.[1] These half dimes (originally spelled "half dismes"), were struck in silver. The alloy used was originally .892 silver with the remainder copper; in 1837 the silver portion was increased to .900.[2]

The

three-cent pieces of 75% copper and 25% nickel.[4]

In 1864, Congress had authorized a third series of fractional currency notes. The five-cent note was to bear a portrait of "Clark", but Congress was appalled when the issue came out not bearing a portrait of

William Clark, the explorer, but Spencer M. Clark, head of the Currency Bureau. According to numismatic historian Walter Breen, Congress's "immediate infuriated response was to pass a law retiring the 5¢ denomination, and another to forbid portrayal of any living person on federal coins or currency."[5] Clark only kept his job because of the personal intervention of Treasury Secretary Salmon P. Chase.[5]

Mint Director James Pollock had been opposed to striking coins containing nickel but in view of the initial success of the copper-nickel three-cent piece, he became an advocate of striking five-cent pieces in the same metal. In his 1865 report Pollock wrote, "From this nickel alloy, a coin for the denomination of five cents, and which would be a popular substitute for the five cent note, could easily be made ... [The five cent coin should be struck in base metal] only until the resumption of specie payments ... in time of peace ... coins of inferior alloy should not be permitted to take the place permanently of silver in the coinage of pieces above the denomination of three cents."[6]

A bronze coin with a shield in the center, dated 1865.
Longacre's two-cent piece; its design was the basis for the Shield nickel.

Industrialist Joseph Wharton had a near-monopoly on the mining of nickel in the United States and sought to promote its use in coinage.[7] He was also highly influential in Congress. His friends there, though they had failed to obtain the metal's use for the two-cent piece, had been more successful with the three-cent coin.[8] Pollock prepared a bill authorizing a five-cent coin of the same alloy as the three-cent piece and a total weight not to exceed 60 grains (3.9 g). At the committee stage in the House of Representatives, the weight was amended to 77.19 grains (5.00 g), ostensibly to make the weight equal to five grams in the metric system[a] but more likely so that Wharton could sell more nickel.[6] This made the new coin heavy in comparison to the three-cent copper-nickel coin. The bill passed without debate on May 16, 1866.[6] The new copper-nickel coin was legal tender for up to one dollar, and would be paid out by the Treasury in exchange for coin of the United States, excluding the half cent, cent and two-cent. It was redeemable in lots of $100 for banknotes. Fractional currency in denominations of less than ten cents was withdrawn.[9][10]

Design and production

Since coinage was to begin immediately, it was necessary for the Mint's chief engraver,

obverse, or "heads" side, and the stars and rays design for the reverse. Pollock did not show McCulloch the Lincoln design, believing it would not be well received in the South.[b]

James Barton Longacre

According to numismatic author

Great Seal of the United States of America, Longacre's design focused on the shield, or escutcheon as a defensive weapon, symbolizing strength and self-protection through unity. The upper part of the shield, or "chief", symbolizes Congress, while the 13 vertical stripes, or "paleways" symbolize the states; consequently the entire escutcheon symbolizes the strength of the federal government through the unity of the states.[14] The crossed arrows, whose ends are visible near the bottom of the shield, symbolize nonaggression, but imply readiness against attack. The laurel branches, taken from Greek tradition, symbolize victory.[14] In heraldic engraving, vertical lines represent red, clear areas white and horizontal lines blue, thus the escutcheon is colored red, white and blue and is meant to evoke the American flag. Bowers does not consider the reverse design an artistic work, but one which is purely mechanical, obtained by punching characters and devices into a steel hub.[13]

The new coins proved difficult to produce; due to the hardness of the

counterfeit, and the Mint considered abandoning the shield design entirely.[11]
| Seeking alternatives to the difficult-to-work copper-nickel alloy, in June 1867 Longacre proposed that the five-cent piece be struck in aluminum. The new Mint director, Henry Linderman, objected to the proposal, stating that the price and supply of aluminum were as yet uncertain, and that the metal was too expensive to use in a minor coin. Numismatic historian Don Taxay, in his history of the United States Mint and its coins, noted that Linderman had proposed legislation increasing the proportion of nickel in the alloy to a third despite having earlier opposed the use of nickel in coins. Taxay suggested that Linderman was most likely influenced by Wharton and the metal's other advocates.[18]

Pattern coin by James B. Longacre when the Mint was considering replacing the Shield nickel in 1867. From the collection of the Money Museum of the American Numismatic Association, Colorado Springs, CO
1867 "Indian Head" pattern

By late 1869, enough nickels, as the coin came to be called, had been produced to meet the needs of commerce, and production dropped off.[19] The new coins tended to accumulate in the hands of merchants beyond the legal tender limit, but banks refused to accept them beyond the one-dollar maximum. Storeowners were forced to discount the coins to brokers.[10] Postmasters, compelled by law to accept the coins, found that the Treasury would not accept them as deposits except in lots of $100, in accordance with the authorizing statute.[20] In 1871, Congress alleviated the problem by passing legislation allowing the Treasury to redeem unlimited quantities of nickels and other low-denomination coins when presented in lots of not less than $20.[10] It would not be until 1933, long after the shield design passed from the scene, that the nickel was made legal tender without limit.[19]

The

proof specimens for collectors.[10] As the Treasury had a large stock of nickels in storage, only small numbers were struck over the next few years; full-scale production began again on December 12, 1881. The 1880 nickel, with only 16,000 pieces struck for circulation, remains the rarest non-proof Shield nickel today.[24]

Varieties

A closeup of part of an 1873 Shield nickel, showing the date, in which the arms of the "3" reach close to each other
1873 "closed 3" variety
A closeup of part of an 1873 Shield nickel; the arms of the "3" curve only slightly towards each other
1873 "open 3" variety

The Shield nickel series has yielded a large number of varieties. Howard Spindel, a leading expert on Shield nickels, notes that Shield nickel dies produced far fewer coins than other coin dies, as the dies wore out so fast that the Mint was continually under great pressure to produce new ones. According to Spindel, many dies were hastily and carelessly produced, producing numerous minor varieties.[25]

Bowers points to the 1868 nickel as "a playground for repunching [repunched dates], errors, and the like".[25] Specialists have found more than sixty different doubled die varieties, caused by misalignment when the heated die was repeatedly pressed against the hub to transfer the design. There are several different kinds of repunched dates, including a variety in which the numeral "1" is much smaller than usually found on the Shield nickel.[26]

As with many denominations of United States coins, there are two major varieties of the 1873 piece. The initial variety, known as the "close 3" or "closed 3", was struck first. These coins led to a complaint by the chief coiner, A. Loudon Snowden, to Pollock, who was again director of the Mint. Snowden stated that the numeral "3" in the date too closely resembled an "8". The Mint prepared new date punches, in which the arms of the 3 did not curl around toward the center, creating the second variety, the "open 3".[27]

The final year of production saw an overdate, 1883/2, with a visible "2" under or near the digit "3". This variety was caused by the use of 1882-dated dies which were not destroyed at the end of the year, but were instead repunched with a four-digit logotype, "1883". Five different dies are known to have been so reused, and Bowers estimates a mintage of 118,975 pieces. Spindel estimates that only 0.2%–0.3% of the pieces have survived to the present.[28]

Replacement

The 1867 redesign of the reverse had not solved the problems of short die life and poor striking;

goddess of Liberty on the obverse and the Roman numeral "V" on the reverse, was approved. The following year the Barber design replaced the Shield nickel.[31] The Barber design was first struck on Jan. 30, 1883 and placed in circulation Feb. 1, 1883. Mint officials desired to discourage hoarding and speculation of 1883 proof Shield nickels, and received permission on Feb. 6, 1883 to continue production of proof Shield nickels concurrent with proofs of the new Liberty Head nickel. Proof Shield nickels continued to be struck until June 26, 1883 when the last 1500 proof shield nickels were produced.[32]

Mintages

Year Proofs Circulation strikes
1866 600+ 14,742,500[33]
1867 with rays 25+ 2,019,000
1867 without rays 600+ 28,890,500
1868 600+ 28,817,000
1869 600+ 16,395,000
1870 1,000+ 4,806,000
1871 960+ 561,000
1872 950+ 6,036,000
1873 closed 3 1,100+ 436,050 (est.)
1873 open 3 0 4,113,950 (est.)
1874 700+ 3,538,000
1875 700+ 2,097,000
1876 1,150+ 2,530,000
1877 proof only 510+ 0
1878 proof only 2,350 0
1879 3,200 25,900
1880 3,955 16,000
1881 3,575 68,800
1882 3,100 11,472,900
1883 5,419 1,451,500

Shield nickel proof mintages from before 1878 are modern estimates and may vary—for example, Bowers estimates 800–1,200 for the 1866 piece, while Peters estimates 375+.[34] The issue is complicated by the fact that restrikes were made of proofs, sometimes years after the inscribed date. Mint officials, despite what Bowers terms "official denials (a.k.a. lies)", reused dies which had supposedly been destroyed to strike pieces for favored collectors or dealers. This practice led to incongruous pieces, with a dated obverse mated with a reverse not placed in use until years later.[35]

All pieces struck at the Philadelphia mint, without mintmark.[36]

See also

References

Explanatory notes

  1. ^ A new U.S. nickel still weighs exactly 5 grams. U.S. Mint, "Coin Specifications"
  2. ^ a b Peters & Mohon 1995, p. 3. Shield nickel expert Howard Spindel questions whether a pattee was intended, citing differences between the cross used on the coin and a heraldic pattee. Bowers 2006, p. 63.

Citations

  1. ^ Montgomery et al. 2005, p. 22.
  2. ^ Taxay 1983, p. 388.
  3. ^ Taxay 1983, p. 243.
  4. ^ a b Lange 2006, p. 99.
  5. ^ a b Breen 1988, p. 246.
  6. ^ a b c Taxay 1983, p. 244.
  7. ^ Montgomery et al. 2005, p. 25.
  8. ^ Taxay 1983, pp. 241–244.
  9. ^ Peters & Mohon 1995, p. 3.
  10. ^ a b c d e f Lange 2006, p. 100.
  11. ^ a b c d Taxay 1983, pp. 244–245.
  12. ^ Breen 1988, p. 247.
  13. ^ a b Bowers 2006, p. 54.
  14. ^ a b Peters & Mohon 1995, p. 16.
  15. ^ a b Taxay 1983, p. 245.
  16. ^ Peters & Mohon 1995, p. 4.
  17. ^ Bowers 2006, p. 67.
  18. ^ Taxay 1983, pp. 245–246.
  19. ^ a b Peters & Mohon 1995, p. 5.
  20. ^ Bowers 2006, p. 75.
  21. ^ Taxay 1983, p. 258.
  22. ^ Bowers 2006, p. 77.
  23. ^ Peters & Mohon 1995, p. 81.
  24. ^ Peters & Mohon 1995, pp. 76–81.
  25. ^ a b Bowers 2006, p. 90.
  26. ^ Bowers 2006, pp. 102–103.
  27. ^ Bowers 2006, pp. 110–111.
  28. ^ Bowers 2006, pp. 124–125.
  29. ^ a b Lange 2006, p. 123.
  30. ^ Peters & Mohon 1995, pp. 11–12.
  31. ^ Taxay 1983, p. 285.
  32. ^ Peters & Mohon 1995, p. 95.
  33. ^ Yeoman 2017, pp. 132–133.
  34. ^ Bowers 2006, pp. 78–79.
  35. ^ Bowers 2006, pp. 81–83.
  36. ^ Bowers 2006, p. 34.

Bibliography

  • .
  • .
  • Lange, David W. (2006). History of the United States Mint and its Coinage. Atlanta, Ga.: Whitman Publishing. .
  • Montgomery, Paul; Borckardt, Mark; Knight, Ray (2005). Million Dollar Nickel. Irvine, Ca.: Zyrus Press Inc. .
  • Peters, Gloria; Mohon, Cynthia (1995). The Complete Guide to Shield & Liberty Head Nickels. Virginia Beach, Va.: DLRC Press. .
  • Taxay, Don (1983). The U.S. Mint and Coinage (reprint of 1966 ed.). New York, N.Y.: Sanford J. Durst Numismatic Publications. .
  • .

Online

External links

  • Shield Nickels Website on Shield nickels, maintained by Howard Spindel, an authority on the nickel.