Sunday, June 19, 2016

Story Behind the Coin: Buffalo Nickel: Part 2

Release and Production

The first coins to be distributed were given out on February 22, 1913, when Taft presided at groundbreaking ceremonies for the National American Indian Memorial at Fort Wadsworth, Staten Island, New York. The memorial, a project of department store magnate Rodman Wanamaker, was never built, and today the site is occupied by an abutment for the Verrazano-Narrows Bridge. Forty nickels were sent by the Mint for the ceremony; most were distributed to the Native American chiefs who participated. Payment for Fraser's work was approved on March 3, 1913, the final full day of the Taft administration. In addition to the $2,500 agreed upon, Fraser received $666.15 (US$15,900 with inflation) for extra work and expenses through February 14.

The coins were officially released to circulation on March 4, 1913, and quickly gained positive comments as depicting truly American themes. However, The New York Times stated in an editorial that "The new 'nickel' is a striking example of what a coin intended for wide circulation should not be ...[it] is not pleasing to look at when new and shiny, and will be an abomination when old and dull." The Numismatist, in March and May 1913 editorials, gave the new coin a lukewarm review, suggesting that the Indian's head be reduced in size and the bison be eliminated from the reverse.

With the coin now in production, Barber monitored the rate at which dies were expended, as it was the responsibility of his Engraver's Department to supply all three mints with working dies. On March 11, 1913, he wrote to Landis that the dies were being used up three times faster than with the Liberty Head nickel. His department was straining to produce enough new dies to meet production. In addition, the date and denomination were the points on the coin most subject to wear, and Landis feared the value on the coin would be worn away. Barber made proposed revisions, which Fraser approved after being sent samples. These changes enlarged the legend "FIVE CENTS" and changed the ground on which the bison stands from a hill to flat ground.

According to data compiled by numismatic historian David Lange from the National Archives, the changes to what are known as Type II nickels (with the originals Type I) actually decreased the die life. The new Treasury Secretary, William G. McAdoo, wanted further changes in the coin, but Fraser had moved on to other projects and was uninterested in revisiting the nickel. The thickness of the numerals in the date was gradually increased, making them more durable; however the problem was never addressed with complete success, and even many later-date Buffalo nickels have the date worn away.

The Buffalo nickel saw minor changes to the design in 1916. The word "LIBERTY" was given more emphasis and moved slightly; however many Denver and San Francisco issues of the 1920s exhibit weak striking of the word, the Denver issue of 1926 especially; Bowers questions whether any change was made to the portrait of the Indian, though Walter Breen in his reference work on United States coins states that Barber made the Indian's nose slightly longer. According to Breen, however, none of these modifications helped, with the coin rarely found well-struck and with the design subject to considerable wear throughout the remainder of its run. The bison's horn and tail also posed striking problems, again with the Denver and San Francisco issues of the 1920s in general, and 1926-D in particular, showing the greatest propensity for these deficiencies.

The piece was struck by the tens of millions, at all three mints (Philadelphia, Denver and San Francisco), through the remainder of the 1910s. In 1921, a recession began, and no nickels at all were struck the following year. The low mintage for the series was the 1926-S, at 970,000 — the only date-mint combination with a mintage of less than 1 million. The second lowest mintage for the series came with the 1931 nickel struck at the San Francisco Mint. The 1931-S was minted in a quantity of 194,000 early in the year. There was no need for more to be struck, but Acting Mint Director Mary Margaret O'Reilly asked the San Francisco Mint to strike more so that the pieces would not be hoarded. Using materials on hand, including the melting down of worn-out nickels, San Francisco found enough metal to strike 1,000,000 more pieces. Large quantities were saved in the hope they would become valuable, and the coin is not particularly rare today despite the low mintage.

A well-known variety in the series is the 1937–D "three-legged" nickel, on which one of the buffalo's legs is missing. Breen relates that this variety was caused by a pressman, Mr. Young, at the Denver Mint, who in seeking to remove marks from a reverse die (caused by the dies making contact with each other), accidentally removed or greatly weakened one of the animal's legs. By the time Mint inspectors discovered and condemned the die, thousands of pieces had been struck and mixed with other coins.

Another variety is the 1938-D/S, caused by dies bearing an "S" mintmark being repunched with a "D" and used to strike coins at Denver. While the actual course of events is uncertain, Bowers is convinced that the variety was created because Buffalo nickel dies intended for the San Francisco mint were repunched with the "D" and sent to Denver so they would not be wasted—no San Francisco Buffalo nickels were struck in 1938, but they were produced at Denver, and it was already known that a new design would be introduced. The 1938-D/S was the first repunched mintmark of any US coin to be discovered, causing great excitement among numismatists when the variety came to light in 1962.

When the Buffalo nickel had been in circulation for the minimum 25 years, it was replaced with little discussion or protest. The problems of die life and weak striking had never been solved, and Mint officials advocated its replacement. In January 1938, the Mint announced an open competition for a new nickel design, to feature early President Thomas Jefferson on the obverse, and Jefferson's home, Monticello on the reverse. In April, Felix Schlag was announced as the winner. The last Buffalo nickels were struck in April 1938, at the Denver Mint, the only mint to strike them that year. On October 3, 1938, production of the Jefferson nickel began, and they were released into circulation on November 15.

Photos courtesy of Coin HELP!
Information from Wikipedia - Used under CC BY-SA license

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