In November, 1860, Abraham Lincoln becomes President of the United States. By the time of his inaugural address on March 4, 1861, a number of Southern states secede from the Union to become the Confederate States of America. President Lincoln tells people that day that he will do anything to get those states back. With the Confederacy wanting no more to do with the Union, they bomb the Union fort at Fort Sumter, SC on April 12, 1861, starting the War Between the States or the Civil War.
During the next four years, US coins go through some changes.
Loss Of US Mint Branches During The Civil War
When the Confederacy forms, three US mints are no longer producing US Coins: Charlotte, NC, Dahlonega, GA and New Orleans. This only leaves Philadelphia and San Francisco which are in the Union. This hurts the Union as Charlotte and Dahlonega produce gold coins and New Orleans produce both silver and gold coins. With no intercontinental railroad yet, it will be tough to get silver and gold from San Francisco.
Indian Cent
When the Indian Cent begins in 1859, it is composed of 88% copper and 12% nickel. With nickel needed for the Civil War effort, the cent becomes thinner and contains 95% copper beginning in 1864.
Two Cent
At the same time as the thinner Indian Cent, a Two Cent Piece starts production and is bigger than the cent. It is also 95% copper. The Two Cent introduces a new motto that appear on most future coins, “In God We Trust”. After the Civil War, the Two Cent becomes less popular and in less than 10 years, it disappears.
Three Cent Nickel
With silver and gold being scarce during the Civil War, people hoard coins, hurting the economy even more. Congress tries to overcome this by producing paper money. The smallest of these notes is 3 cents because all denominations above two cents are either silver or gold coins. In an effort to stop making 3 cent notes, Congress issues a new Three Cent Nickel in 1865. It is approved one month before the end of the Civil War. As a result, the US mint produces less Three Cent Silver pieces and stops making them in 1873.
The Nickel Is Introduced After The Civil War
After the Civil War, Three Cent Nickels become less popular and after 1881, their mintages will only be in the thousands and tens of thousands. The last year of the Three Cent Nickel is 1889.
With nickel no longer needed for the war, a 5 cent nickel coin starts in 1866. The two and three cent pieces eventually go away, but serve their purpose when the country needs them most.
The country goes through a tough period with the assassination of President Lincoln and the South’s Reconstruction Period. Charlotte and Dahlonega mints never reopen and New Orleans wouldn’t be able to reopen until 1879.