The NGC Universal ID is a four digit alphanumeric that groups coins based on a unique combination of date, mintmark, denomination and striking process (MS, PF, or SP). These IDs are a simple organization of all coins prior to variety attribution and grading.
The 1860-S quarter is similar to most of the other S-mint denominations from this decade. The mintage was not notably low, in this case 56,000 pieces produced, but it was apparently calculated to fulfill the needs for regional commerce. Problem coins are frequently seen on this issue.
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