Nickel (United States Coin) - Background

Background

The silver half disme (as the half dime, pronounced the same, was first called) was one of the denominations prescribed by the Mint Act of 1792, its weight and fineness set by law. The first pieces under federal authority were half dismes, struck in 1792 in the cellar of John Harper, saw maker, at Sixth and Cherry Streets in Philadelphia as the first federal mint was still under construction in that city. The dies were engraved by Adam Eckfeldt; he recalled a half-century later that the silver for the half dismes had been supplied by President George Washington, and that the 1,500 coins struck from the bullion were given to Washington's Secretary of State, Thomas Jefferson, for distribution to important people both in the US and overseas. By legend, President Washington supplied silverware from his home, Mount Vernon, to provide bullion for the coins. In his annual message to Congress in late 1792, Washington noted the ongoing construction of a mint building and stated, "There has also been a small beginning in the coinage of half dismes, the want of small coins in circulation calling the first attention to them."

In 1793, the newly-established United States Mint began striking cents and half cents. Coinage of precious metal pieces was delayed; Congress had required that the assayer and chief coiner each post a security bond of $10,000, a huge sum in 1793. In 1794, Congress lowered the chief coiner's bond to $5,000 and the assayer's to $1,000, and President Washington's appointees to those positions were able to qualify and take office. Silver coinage began that year.

The half dime was struck to various designs by Mint Engraver Robert Scot from 1794 until 1805, though none were dated 1798, 1799, or 1804. By 1804, silver US coins were being heavily exported, as they could be exchanged at par in the West Indies with heavier Spanish coins, which were then imported as bullion and deposited at the Mint for melting and restriking. In response, the US stopped striking silver dollars in 1804 and the half dime was not issued from 1805 until 1829. Mint Director Robert Patterson explained, in 1807, in a letter to Jefferson (by then president) that "nearly the whole of our Silver Bullion (chiefly Spanish dollars) come through the Banks, and it is very seldom that they will consent to take any coin less than half dollars."

The silver five-cent piece was struck again beginning in 1829; its fineness was increased from .8924 to .900 beginning in 1837. Also in 1837, the half dime's obverse design changed from one by William Kneass depicting a bust of Liberty to one featuring a seated Liberty by Christian Gobrecht; the half dime would bear modifications of this design until its abolition in 1873. In 1851, it ceased to be the smallest US silver coin as a three cent piece was issued by the Mint.