Cents and Sensibility

By Brian Kamsoke

History of U.S. currency helps make coin collecting popular

The first U.S. coin was struck in 1792 when President George Washington, Thomas Jefferson and others met in Philadelphia. The coin was a silver half-disme (a disme is the original spelling of dime, so a half-disme was equal to 5 cents). President Washington melted his own silverware to supply this first batch of U.S. coins.

Coin collecting first became popular around 1825, though it was considered a hobby of kings.
By 1875, coin collecting began to enter the mainstream, and today there are an estimated more than 5 million Americans of all ages and backgrounds who collect coins.

Indeed, coin collecting today has enjoyed renewed interest, especially with rising commodity and precious metal markets. Gold recently topped out at nearly $1,000 per troy ounce and silver touched $16 per ounce.

As well, commemorative coins and various promotional coin programs (such as the state quarter program, which ends this year) have maintained and inspired coin collecting through generations.

Nine-year-old Bryce McCarthy of Norwich was introduced to coin collecting by his grandfather.
"I find the coins Pop-pop's looking for. We've filled up this whole book," he says, holding up a book displaying their collection of state quarters.

"And this here is a wheat penny," he says, as he slides the coin across the tray table. And why is it called that?

"Because see here," he says, leaning in closer and eyeing the back of the penny, "this is wheat right here." He points to two stylized wheat stalks on the back of the coin. "This penny is worth twice as much as a regular penny."

That may not sound like a lot of money when you're talking about pennies, but don't tell that to the collector who recently auctioned 301 pennies for $10.7 million.

Of course, these were some of the first pennies struck at the start of the union.

"I get people coming in wanting to buy gold or silver coins as an investment, especially now. But most people are just looking for something like a 1909 penny for their collection," says George Beams of Buddy's Coins in Cooperstown Junction. "It's the satisfaction of completing a collection and that sense of history that goes with it."

How can you not feel nostalgic when holding a 150-year-old coin in the palm of your hand? Where has that coin traveled to reach where it is now? What was going on in the country when it was first minted? Who created it and why?

There's a story to each individual coin.

Beams related a story about the 1883 U.S. nickel referred to now as the "gangster" nickel. It seems the U.S. mint neglected to include the word "cent" on the coin when it was struck.
So, innovative thieves and con-artists gold plated some of the nickels and passed them off as $5 gold pieces.

Today, such details are usually not overlooked, as coins are created in mass quantity with sophisticated machinery. But it didn't use to be that way. In the first mints (the original in Philadelphia, and three branch mints in Dahlonega, Ga., Charlotte, N.C., and New Orleans) coins were created with a giant coin press that was so big it took two workers just to turn its lever.
A watchman was always on duty; the punishment for embezzling any coins from the mint was death by hanging.

In 1852, Congress authorized the San Francisco Mint in response to the Gold Rush in California. During the Civil War, the Confederate Army took control of the three southern mints; only the New Orleans mint was reopened after the war. Today, only the Philadelphia Mint, the Denver Mint, the San Francisco Mint and the West Point Mint remain.

In 1866, two mottos were included on all U.S. money. The first, E pluribus unum, is Latin for "one out of many." It refers to the time when the original 13 states joined together to form one union.

Before 1791 each state had its own coins, which of course made buying and selling goods across state lines rather confusing.

The second motto, "God, Our Trust," was first added to the two-cent piece in 1864, and later changed to "In God We Trust" and put on all U.S. coins. In 1955, a bill was passed paving the way for the motto to be included on all U.S. paper money as well.

Caring for your coin collection means being careful how you store, handle and clean it. (Actually, some experts recommend never cleaning your coins, because if not done properly, it could cause abrasions that will reduce the fineness). Never use metal polish or a wire brush to clean coins; instead, use cotton balls dipped in rubbing alcohol, or use soap and water and dry them thoroughly.

When handling your coin collection, always hold the coin by the rim between your thumb and forefinger. Never put your sticky fingers anywhere near coins; this will just make them dirty.
Mahogany wood trays are best for storing old precious metal coins. Don't use any other wood, or cardboard, because they can cause corrosion.

Paper envelopes do not contain any acid, which is corrosive and harmful to your coins, so they can be used for storing your coins.

Never use plastic envelopes because they get sticky and will cause corrosion.

Of course, it's up to you how you want to collect, store or display your coin collection.

One thing is for certain, with more than 18 billion American coins in circulation today, you won't run out of ideas anytime soon.