The United States Mint has produced five-cent pieces since 1792. Early five-cent coins, known as “Half Dimes,” contained over 89% pure silver. In 1866, the US Mint introduced the first-ever five-cent piece composed of copper-nickel, known as the “Shield Nickel.” Designed by James Longacre, this coin was made of 75% copper and 25% nickel, weighing approximately 5 grams.
When the Civil War began in 1861, the US Mint halted all physical coin production. Gold and silver coins were hoarded, causing many American coins to disappear from circulation. The void left by the absence of coins was filled with merchant tokens, encased postage stamps, and United States fractional currency in cent denominations. Fractional currency was issued in denominations as low as three cents and as high as fifty cents.
In 1864, Congress initiated efforts to reintroduce coins into circulation. Due to the metal coin shortage, Congress also authorized a third series of fractional currency notes, including a five-cent note. Congress intended the note to feature a portrait of William Clark of “Lewis and Clark” fame, but the legislation only specified "Clark." Spencer M. Clark, the head of the US Currency Bureau, took advantage of this ambiguity and placed his own portrait on the five-cent note. Congress was outraged and quickly passed legislation retiring the five-cent denomination and forbidding the portrayal of any living person on federal coins or currency. Instead, they decided to strike a five-cent coin from copper-nickel, the same alloy used for the popular three-cent piece.
Joseph Wharton, an influential industrialist who controlled much of the US nickel supply, heavily advocated for coins containing the copper-nickel alloy. Mint Director James Pollack, influenced by Wharton’s proposals, drafted a bill authorizing the five-cent piece. After adjusting its weight from 3.9 grams to 5.0 grams, the bill passed in May 1866. The Mint's Chief Engraver, James B. Longacre, was tasked with quickly preparing a design, and after several patterns, Treasury Secretary Hugh McCulloch selected the final design.
By late 1869, Shield Nickel production dropped off as enough coins had been minted to meet commercial needs. The Mint Act of 1873 allowed the Mint Director to suspend production of any coin denomination if deemed unnecessary. Consequently, no Shield Nickels were struck in 1877 and 1878, except for proof versions for collectors. Limited mintages continued until full-scale production resumed on December 12, 1881. The 1880 Shield Nickel, with only 16,000 pieces struck, is the rarest non-proof variety. Production of the Shield Nickel ended on February 6, 1883, when the Liberty Head Nickel, designed by the new Chief Engraver Charles Barber, replaced it.
James Longacre created several patterns for the Shield Nickel, including designs featuring George Washington and Abraham Lincoln. The shield design was chosen by Treasury Secretary Hugh McCulloch for the obverse. Longacre proposed various reverse designs, and the chosen one featured the number 5 within a circle of thirteen stars with rays of light separating each star. The initial design faced criticism due to manufacturing difficulties, leading to a revision in 1867 that removed the rays to simplify production.
Coin images sourced from: National Numismatic Collection, National Museum of American History
The series includes many minor varieties due to quick die wear and inconsistent production. The most notable variety stems from its first year: the “With Rays” (1866-1867) and “Without Rays” (1867-1883) designs.
Depending on the year of mintage and condition, Shield Nickels can be quite valuable. Only about eight varieties have been valued above $1,000 in certain conditions:
Shield Nickels are relatively affordable compared to other early American coins, making them popular among collectors. Values for common dates range from $20 in good condition to over $200 in uncirculated condition. Shield Nickels in Extremely Fine or Very Fine condition can sometimes be worth more than Proof versions from the same year. When determining the value of your coin, it's best to consult a numismatic professional like the Numismatic Guaranty Company (NGC) and the Professional Coin Grading Service (PCGS).
The Shield Nickel holds a unique place in American coinage history. Despite its production challenges and short-lived circulation, its distinctive design and historical importance make it an exciting addition to any coin collection. At Bullion Hunters, we offer expert advice and a wide selection of collectible coins. Visit our website or contact us today to explore our inventory and augment your collection with captivating pieces of numismatic history.