The Shield nickel was the first five-cent nickel struck by the United States Mint. It replaced the half dime and was minted from 1866 to 1883.
Historical Context of the Shield Nickel
Small change was in such short supply after the Civil War that the government resorted to issuing fractional paper currency, a temporary and unpopular solution.
Adoption and use of the copper-nickel three-cent piece and bronze pennies encouraged expansion into base metal coinage, catalyzing the birth of the Shield Nickel. The movement to create a new five-cent piece began largely out of necessity but was influenced by industrial interests, like those of Joseph Wharton, a major U.S. nickel producer. Wharton lobbied for the Coinage Act of May 16, 1866, which authorized a new five-gram, five-cent coin composed of 75% copper and 25% nickel.
While the Shield nickel was the first five-cent nickel coin, it was not the first five-cent coin struck by the U.S. Mint. Silver half dimes had been struck since 1794, but amid rising silver prices, the effects of seigniorage were felt at the Mint. The half dime was eliminated by the Coinage Act of 1873, but the two five-cent coins circulated alongside each other for several years, if one could have found a silver half dime.
The Design of the Shield Nickel
Chief Engraver James B. Longacre designed the Shield Nickel in haste, repurposing the shield motif from the two-cent piece.
Obverse Design
The obverse design of the Shield nickel depicted a shield in front of laurel branches and crossed arrows with the top of a pattee emerging above the shield. An inscription above the shield reads IN GOD WE TRUST, and the date is found below the shield.
Reverse Design
The reverse of the Shield nickel features a large number 5, which is surrounded by 13 stars for the 13 colonies. An Inscription for UNITED STATES OF AMERICA surrounds the upper 2/3 of the design with CENTS appearing below the design. In its first iterations, there were rays emanating between the 13 stars. As a result of die wear, the rays were removed from dies after 1867, creating two primary variations of the Shield nickel- Those with rays and those without rays.
Everyday Use and Circulation
The reception to the Shield Nickel was mixed. Merchants appreciated the durable new coins for commerce, but the public initially balked at their size, weight, and unfamiliar appearance. Early vending machines and mechanical banks found the hard, thick coins problematic; many had been calibrated for lighter or smaller half dimes. Confusion between silver half dimes and the new nickels persisted for several years until the older coins were withdrawn. Nonetheless, the Shield Nickel helped restore confidence in America’s coinage system, replacing paper substitutes and unreliable precious metal coins in the average person’s daily experience.
Role in the Evolution of the Five-Cent Piece
The Shield Nickel was responsible for establishing a lineage that would expand through the Liberty Head, Buffalo, and Jefferson Nickels. Each successor responded to the lessons and legacy of the Shield Nickel, ensuring the five-cent piece’s continued presence in American commerce and culture. As the founding issue of this storied series, the Shield Nickel’s impact endures in the pockets, history books, and collections of numismatists nationwide.
The Shield Nickel is a tangible relic of post-war America and a testament to numismatic innovation. Its complex metallurgical story, controversial legislative birth, production challenges, and lasting collector interest make it a central chapter in the saga of U.S. coinage and forever altered how Americans produce, use, and perceive their small change.
