Although a fact little known to modern-day collectors, the U.S. “nickel” (5-cent piece) is a direct result of the American Civil War of 1861-1865. Before that time there was a 5-cent coin, but it was made of silver and called a half dime. However, in the summer of 1862, a nervous public hoarded all available silver coins, and the Union government of President Abraham Lincoln was forced to issue paper money in denominations as low as 3 cents.
By 1863, even the lowly copper-nickel cent was under attack by hoarders, and citizens began to lay aside these coins as well. In April 1864, the government threw in the towel and began making cent and 2-cent pieces from bronze, which was less costly than nickel and the metals easier to obtain.
The 1864 law had been passed over strong opposition from Joseph Wharton and his friends in Congress. Wharton owned a nickel mine in Pennsylvania and thought that he should be selling his metal to the government for its coinage. The change to bronze for the cent and 2-cent pieces meant that he would now sell no nickel to the Mint.
In 1865, as the war was winding down, Wharton’s legislative allies went on the offensive. Congress passed a bill authorizing a 3-cent piece of copper-nickel, and it was duly signed by President Lincoln. Everyone realized that it was little better than a subsidy to Wharton, but the country was
