|
Nickel Three Cent a Winner
 | By Mike Thorne, Coins Magazine
September 28, 2009 |
Looking for a new series to tackle? Well, I've got a real winner for you: James B. Longacre's nickel three-cent pieces. The series is relatively abbreviated, spanning just 25 years, and has only 27 different Red Book (A Guide Book of United States Coins) varieties. Of these, some are proof-only issues, which are not essential for a "complete" collection.
What's even better from a collecting standpoint, the low-mintage dates, and there are several of these, are priced well below what they would bring if they were part of a more popular series. As just one illustration, the 1885, with a mintage of just 1,000 pieces for circulation (3,790 proofs), ranges in value in the 2009 U.S. Coin Digest from $470 in Good-4 to $900 in Mint State-60. Can you imagine what this would be worth if it were an Indian Head cent? The 1877 Indian Head cent, with a mintage of 852,500, starts at $850 in G-4 and is worth $3,800 in MS-60. What a difference high demand makes.
At this point, you're probably thinking, "What was the point of the coin anyway?" To begin to answer this question, you must keep in mind when this coin was introduced, at the end of the Civil War. To say that this was a time of extreme upheaval in the country's monetary system is a gross understatement. This was a time that saw the use of tokens, encased postage stamps, and even Fractional Currency, which included three-cent notes. Of course, anything with silver was hoarded, and this included the silver three-cent piece.
According to Walter Breen's Complete Encyclopedia of U.S. and Colonial Coins, nickel three-cent pieces were coined "mostly to retire the unpopular 3c fractional notes. Like the trimes [silver three-cent pieces], these fractional notes found their major use in post offices. One would send a letter on its way; a pack of 100 would buy a sheet of stamps. They were the smallest in size and value of any fractional notes; they quickly became foul things of rags and tatters; they were easily lost. More than any higher denomination, perhaps, they continued to be known by the derisive term 'shinplasters.'"
Although Mint Director James Pollock was bitterly opposed to the use of nickel in U.S. coinage, he was outgunned by the friends of another important player in the development of this series: Joseph Wharton. Wharton bought a nickel mine in 1863, which obviously gave him a vested interest in coins made from the metal. Wharton's supporters pressured House Representative John Adam Kasson to introduce a bill "which would authorize coinage of nickel 3c pieces at 30 grs. each, to be legal tender to 60c. These were to be paid out in exchange for 3c notes, which would thereafter be canceled. Implication: The coins would replace a like number of shinplasters, and eventually replace the entirety of that issue.& Kasson introduced the bill; it passed both houses without debate (such was congressional hatred of shinplasters!) and became law the same day, March 3, 1865."
For the obverse, Longacre used a version of Liberty that Breen describes as "suspiciously similar&to the Venus Accroupie used on his other designs since 1849." The reverse design featured the Roman numeral III within a laurel wreath. No design changes were made throughout the coin's tenure.
Of course, nickel is a hard metal, and even when alloyed with 75 perecent copper, it is difficult to strike up fully. As a result, many of the coins minted in the early years of the design were weakly struck. As Kevin Flynn and Edward Fletcher report in The Authoritative Reference on Three Cent Nickels, such weakness "is usually evident on the Roman numerals on the reverse. For some unknown reason many of the 1865 obverse and reverse coins show signs of clashing. Clashing occurs when the obverse and reverse dies strike each other without a coin between them. This could have been caused by a faulty feeder or other malfunction. The outline of Liberty is often found on the reverse inside the wreath."
The nickel three-cent pieces were indeed used for the purpose stated in the authorizing legislation: to replace shinplasters. "From 1865 through 1889 over 30 million Three Cent nickel pieces were struck. Most of these were used to replace over 17 million fractional notes. Others were primarily used in post offices. During the first year over 11 million were struck. In 1866 only 4.8 million were struck. The production of these coins decreased every year as less fractional notes were turned in."
Toward the end of the series, in 1883-1885, more proofs were struck than pieces for circulation. Another factor in the decreased need for coinage of the denomination is that in the decade between 1871 and 1881, many nickel three-cent pieces were redeemed to the Mint and then reissued. "With many of the coinage being recirculated it was no wonder that the Mint did not need to strike many new coins from this series. The denomination was abolished with the Act of September 25, 1890 following a change in the postal rate."
Apparently, melting of nickel three-cent pieces occurred on a grand scale, with the resulting metal being used in the coining of Liberty Head nickels. According to Flynn and Fletcher, "The copper nickel alloy became an important metal used in U.S. Coinage after the Three Cent nickels. It has been used in many series since and has become one of the most popular alloys used for coinage."
As for the series, there are several different ways it can be collected. For most collectors, a nice specimen for their type collection will suffice. Another option is to assemble a set of all the different dates minted for circulation. Next would be a set consisting of all the different dates of nickel three-cent pieces, which would include 1877, 1878, and 1886, dates minted in proof only. You could also tackle all the dates minted as proofs, which turns out to be all the dates the denomination was issued. Of course, a combination of all proofs and regular issues would be another possibility. Finally, you could approach the series from the standpoint of its die varieties, as "there are many treasures in this series as [The Authoritative Reference on Three Cent Nickels] will testify."
Like many odd-denomination series (e.g., two-cent pieces, 20-cent pieces, gold $3 pieces), mintages were high at the beginning of the series and tailed off thereafter. Looking at values of the individual dates, the series can be divided into those minted before 1877 and those struck after 1877, except for the 1881, which had a mintage of more than 1 million pieces and would be more at home among the early issues.
For the so-called common dates, with mintages of more than 150,000 apiece, values typically begin at $20 or less in G-4 and ascend rather gradually up through About Uncirculated-50. Prices for this grade range from $57.50 for the most common dates to $105 for the 1876, which has the lowest mintage by far of the dates in this group (162,000).
In uncirculated, values in MS-60 range from $105 to $220. In MS-65, the range is from $700 to $1,700. When you consider the age of the coins and their mintages, you'll be struck by how low these values actually are.
As I noted above, all of these early dates were also minted as proofs, with mintages ranging from 500+ (1865) to 1,150+ (1876). Values in Proof-65 range from $800 to $6,500. This value range is misleading, however, as the high figure is for the 1865, which is worth at least three times as much as any of the others.
Beginning with 1877, again with the exception of 1881, we find generally lower mintages and much higher prices. The 1877s and 1878s come as proofs only, although apparently a lot of the coins found their way into circulation. This is indicated by values throughout the grade range. With a Red Book mintage of 500+ (estimated mintage of 900 in Coin Digest), the 1877 is worth between $1,100 in G-4 and $1,350 in AU-50. In PR-65, it lists for $3,750. The 1878, with a mintage of 2,350, ranges from $615 in G-4 to $1,200 in PR-65.
With the exception of 1881, with its high mintage and low values, all of the nickel three-cent pieces after 1878 have both low mintages and relatively high values. High for this series, that is, as they would be ridiculously low in more popular series.
The most common of the remaining dates, or at least the ones with the highest mintages, are 1879, 1880, 1882, 1888, and 1889. All have mintages of at least 18,000, with two (1879 and 1888) having mintages approaching 40,000. These two are the most affordable of the bunch, with values for the 1879 ranging from $65 in G-4 to $850 in MS-65.
For the 1888, the range is from $52.50 to $725. As the values of each go up rather gradually in the circulated grades, it strikes me that it would be better to get the highest circulated grade you could find if you couldn't afford an uncirculated specimen. The same statement could be made for virtually all of the dates in the series.
Three of the later dates have mintages either slightly above or slightly below 20,000: 1880 (21,000), 1882 (22,200), and 1889 (18,125). Values for the 1880 range from $100 in G-4 to $800 in MS-65, and you find a similar price range for the 1889 ($90 to $800). The date with the largest mintage, the 1882, starts at $130 in G-4 and is worth $1,100 in MS-65.
Of the remaining dates, 1883 has the highest mintage (10,609, if you include the proof specimens) and the lowest values, with a range from $200 in G-4 to $480 in MS-60. From there, it takes a big jump to $4,350 in MS-65. In PR-65, it's worth only $580, so you definitely need to be sure you can tell the difference between a circulation strike and a proof strike for this date. (Hint: Certification by one of the major services would be more than desirable.)
The rest of the dates have mintages of 5,001 (1887) or less, generally much less. Only 1,000 of the 1885 were minted as circulation strikes, for example. Values for the circulation strikes of the 1885 range from $470 in G-4 to $2,300 in MS-65, with the date in PR-65 being worth just $650. The reason for the lower value in proof is that nearly four times as many of the date (3,790) were minted as proofs.
The Red Book lists only three varieties for the series: 1873 with a "closed 3," 1873 with an "open 3," and 1887/6 proof. Although approximately twice as many of the "open 3" variety of the 1873 were minted as the "closed 3," the two have virtually identical values in the Red Book, ranging from $18 in G-4 to approximately $170 in MS-63.
Apparently, most of the 1887 proofs are the 1887/6 variety. Values listed for this variety in Coin Digest range from $350 in G-4 to $515 in AU-50, with a figure of $975 for the date in PR-65.
If you like to look for and collect die varieties, then this series may present a fertile field. You will definitely want to obtain a copy of Flynn and Fletcher's book, mentioned above. In the section of the book on doubled dies, the authors present a doubled-die obverse on the 1866. They describe the coin as having strong doubling on "OF AMERICA" and the back of Liberty's head. Under Comments, they write, "This variety is the most dramatic doubled die for this series.& Because the Three Cent nickel series is not in high demand, the premium factor is not high. If an Indian cent doubled die had this degree of doubling it would have a premium factor of 7 to 10 times."
Although many of the values I've listed in this article may seem steep, if you consider the original mintages, the numerous meltings, and the length of time that has passed since these coins were made, you'll realize that the prices are ridiculously low. Here, as always, demand equals value, and nickel three-cent pieces are not collected by most American collectors.
The biggest problem confronting the budding collector of this series is likely to be availability. Just because the scarce dates are not particularly expensive, it doesn't mean that you can go to your neighborhood coin shop and buy most of the ones you need. For that matter, you're likely to find precious few of the "keys" at most coin shows you attend.
Of course, if all of the dates were readily available, then there would be no challenge to assembling a set. If you like a challenge, then I can guarantee that you'll find it in the nickel three-cent series. I think you'll be amply rewarded for accepting the challenge.
Add to: del.icio.us digg
With this article: Email to friend Print
| On September 30, 2009 Rocco Stanzione said  |
Something to add? Notice an error? Comment on this article. | |