The first of the five cent denomination struck in nickel, although in reality it is a composition of pure copper and nickel. Shield nickels were first minted in 1866, and after 1873 were the sole representative for the 5 cent denomination. Using the same composition as the three-cent nickel piece introduced in 1865, the shield nickels were struck in two major design varieties. All were minted at the Philadelphia Mint, as all minor coins (5 cents and under) were until 1909.
The nickel denomination was born out of the need for circulating small change. Even before the Civil War, silver coins had stopped circulating, and during the civil war itself all coinage circulation stopped. It was clear that a solution was needed, and shortly after the civil war it was found in a new, copper-nickel composition containing more nickel than the early small cents had.
On March 3, 1865 a bill passed that authorized the coinage of a 3 cent piece, weighing 30 grains and of a composition of copper and nickel. The coin consisted of 75% copper and 25% nickel, having a silvery-gray appearance. Soon afterward, a 5 cent piece of the same metallic composition was suggested by James Pollock, director of the Mint. According to Taxay, the House coinage committee suggested a weight of 5 grams (77.16 grains), which was rather heavy. The bill passed however, on May 16, without considerable debate and the new nickel 5 cent piece was born.
Several different designs were suggested, and a considerable amount of patterns were created. The most interesting featured the busts of George Washington (two different varieties) or Abraham Lincoln on the obverse. Although very popular with numismatists today, James Barton Longacre, who designed most of the coinage of the era, decided to choose a simpler design.
The obverse used a similar design as that of the 2 cent piece introduced in 1864. There are some minor differences however. A similar shield was placed on the obverse, with horizontal lines on top and vertical under. The scrolls were omitted and a large cross was placed on top. Under the shield, arrows are visible on both sides, but these were also reduced in size. The motto IN GOD WE TRUST is above the shield, and the date below.
The reverse of the 1866 dated pieces, and some of 1867 feature a large 5 inside a circle of 13 stars. Between the stars are rays, which were removed later in 1867. The hard nickel composition was hard to strike, and the rays led that more metal had to be flowed on the design. This resulted in many weakly struck pieces. Removing the rays was viewed as beneficial, but many pieces are still weakly struck. Until 1873, when the silver half dime denomination was discontinued this was one of two 5 cent denominations, although primarily Shield Nickels circulated. The shield nickel remained to be produced until 1883, when it was replaced by the Liberty nickel.
