Why did the mint produce both half dimes and shield nickels at the same time ?

[thebeav]

I was just sorting through some stuff and I began to wonder. During 1867 to 1873 the mint produced both of these types. Seems a little redundant. I'm sure the post war economy was probably hopping, but jeepers......

 

Paul

[Conder101]

The shield nickel had been authorized to try and produce a coin that would stay in circulation (like the bronze cent two cent and nickel three cent pieces were) Silver at that time was still not circulating because it was still not on par with the paper currency. The shield nickel was successful, the size was good, and the metal value was low enough that hoarding it was not a problem. It was also hoped that the nickels would help retire some of the fractional currency But while the shield nickel was authorized, there was no legislation to end production of the silver half dime. (There was still a belief that "once everything gets back to normal" the silver coins would be reintroduced and the base coins discontinued.) So the half dimes continued in production, mainly in San Francisco where base metal coins were not produced, and in token amounts in Philadelphia that was striking the shields. And about the only reason they were striking the half dimes there was believe it or not, so as to not create rarities. They didn't want the only coinage to be the few hundred proofs ordered each year.

[thebeav]

Thanks Conder.....I appreciate the explanation.

 

Paul

[RWB]

Good explanation!

 

(Basically, Congress said to do it. It took the Mint Act of 1873 to sort things out.)

[CaptHenway]

The shield nickel had been authorized to try and produce a coin that would stay in circulation (like the bronze cent two cent and nickel three cent pieces were) Silver at that time was still not circulating because it was still not on par with the paper currency. The shield nickel was successful, the size was good, and the metal value was low enough that hoarding it was not a problem. It was also hoped that the nickels would help retire some of the fractional currency But while the shield nickel was authorized, there was no legislation to end production of the silver half dime. (There was still a belief that "once everything gets back to normal" the silver coins would be reintroduced and the base coins discontinued.) So the half dimes continued in production, mainly in San Francisco where base metal coins were not produced, and in token amounts in Philadelphia that was striking the shields. And about the only reason they were striking the half dimes there was believe it or not, so as to not create rarities. They didn't want the only coinage to be the few hundred proofs ordered each year.

 

This.

 

Same thing with the three cent pieces.