Gary's Type Set
2C SHIELD (1864-1873)

Owner Comments:

CAC Approved

The civil war of the early to middle 1860s was a dreadful time for all Americans. The fear and uncertainty of war led to the hoarding of any coinage of intrinsic value, including the copper-nickel Indian Head Cent. In an effort to meet the needs of commerce and finance the war the United States Government issued paper “on demand” notes. This, however, only exasperated the problem as the American public redeemed paper money for hard currency making silver and gold even scarcer. Soon the US government put a halt to redeeming paper money for precious metal coinage by issuing “United States” notes called greenbacks. Moreover, fractional currency, tokens, and stamps housed in circular brass frames (Gault Case named after its inventor John Gault) helped to satisfy the small change needs of commerce. In more ways than one, the Two Cent Piece was a product of its time. The American public up until the war was used to their money having intrinsic value. Consequently, they hated paper currency and in particular, fractional currency. To meet the widespread shortage of coins and discourage hoarding, the Coinage Act of 1864 established a new Two Cent Piece, changed the composition of the Indian Head Cent to .950 Copper, .050 Tin and Zinc, and outlawed tokens. These new coins with intrinsic values less than their face value were redeemable at face value up to four cents. However, in spite of this, they were still well received and filled the small change needs of daily commerce. At times of national crisis and trial people often turn to God for help. Subsequently, the 1864 Two Cent Piece is the first United States coin with the motto, “In God We Trust" inscribed on the coin's obverse. A letter from Treasury Secretary Salmon P. Chase to Mint Director James Pollack captures the sentiment of the early 1860s; “No nation can be strong except in the strength of God, or safe except in His defense. The trust of our people in God should be declared on our national coins. You will cause a device to be prepared without unnecessary delay with a motto expressing in the fewest and tersest words possible this national recognition.” An act of Congress in 1957 mandates the use of this motto on all United States coins and paper money. After the war, the use of Two Cent Piece in day-to-day commerce faded and mintages declined every year until its elimination by the Coinage Act of 1873. Overall, the Two Cent Piece had served its purpose and was retired.