How the Shield Nickel Helped Unify America
Although the nickel has been a mainstay in United States coinage for over a century, there was a time when these coins did not exist at all. In fact, it was not until after the Civil War that the five-cent denomination was struck using the metal. Today, Rare Collectibles TV celebrates the creation of the five-cent nickel, which began on May 16, 1866.
Soon after the Coinage Act of 1792 was signed, the US Mint began producing a coin of the five-cent denomination. The earliest of these coins, known as the “half dime,” was struck from silver and played a useful role in day-to-day life for Americans. However, with the American Civil War beginning in 1861,inflation was rampant and many Americans began hoarding precious metal coins rather than spending them. As a result, a large amount of coinage, including half dimes began to vanish from circulation.
By 1864, the Union had undeniably gained the upper hand in the war, and the US Mint was able to begin focusing on the lack of circulating coinage across the country. Wishing to avoid the previous issues that had troubled them, the Mint sought an alternative to silver for its new low-denomination coinage. Nickel was the ideal alternative, as the metal was so abundant that there would never be a shortage and there would not be an incentive to hoard it. In the end, an alloy of 25% nickel and 75% copper was selected, as neither of these metals would be subject to hoarding.
In 1865, shortly after the end of the Civil War, Fourth Chief Engraver of the US Mint, James B. Longacre, began preparing designs for the first nickel. His initial submissions included depictions of President George Washington and Abraham Lincoln, both of which were rejected due to the monarchical undertones of depicting rulers on coinage. The obverse design that was selected exhibits a heraldic shield with thirteen stripes, each of which represent the thirteen founding colonies. Said to be one of the most patriotic designs ever featured on an American coin, the shield was derived from the official Great Seal of the United States and was a potent symbol for reunification in post-Civil War America. The reverse, meanwhile, featured a large numeral “5” surrounded by thirteen stars with rays of sunlight interspersed between the stars.
Due to the hardness of nickel, the rays between the stars were incredibly difficult to strike. In order to ease the difficulty in striking these coins, the rays were removed in 1867. Despite these difficulties, the nickel was widely adopted by Americans who needed a small-denomination coin that could be used for everyday transactions. In the end, the Shield Nickel was struck from 1866 to 1883 before being replaced by the Liberty Head Nickel. Although the coin was continuously struck during this seventeen-year span, there were only Proof examples produced during 1877 and 1878.
As the first nickel produced in the United States, the Shield Nickel is lauded for its immense historical significance. Due to its many production issues, it has also become a favorite among collectors who seek out varieties. Among the many sought-after varieties of this coin produced are the first year of issue 1866 re-punched date and the final year of issue 1883 3 over 2. At Rare Collectibles TV, we offer a wide range of rare coins, including nickels from every series in the denomination.
