1866 5c Rays PR

Key to Collecting: The 1866 Shield nickel is in great demand as the first year of issue and also for inclusion in type sets for the With Rays design. Examples are available in nearly all grade ranges, but quality can be a problem. Most Mint State coins (example illustrated here) have problems of one sort or another, being dull and lifeless (often from overdipping) and/or having weak areas of detail (on at least 90% of the coins examined) and a simple lack of eye appeal. Probably no more than 1 in 10 MS-65 or finer coins is really superb in the eyes of the connoisseur. Most probably, the rarity of this date in the MS-66 grade is due more to overall lack of eye appeal than to actual wear. The good news is that dies of this year abound with interesting repunchings, cracks, and other differences, most of which can be studied and enjoyed with a lowpower magnifying glass.

Proofs are readily available and are usually well struck; however, most have been dipped multiple times, giving them lifeless surfaces. Many others have hairlines or are spotted. Cherrypicking is advised, as probably not more than 1 in 5 or 10 will be a “keeper” for a connoisseur. Such Proofs were first sold in the summer of 1866, after many collectors had ordered Proof sets from the Mint. The Mint once offered single Proofs for 10¢ each for those interested.

Characteristics and Appearance: All are from Reverse Style B (illustrated above; Proofs are different, as described below). Details are usually light in some areas, such as the star centers and the horizontal lines in the shield. Luster can range from dull to (not often) very frosty. Most dies show cracks, sometimes very extensive ones—an interesting feature without effect on the market price. At least one die shows extensive crumbling at the denticles at the lower left of the obverse. Striking is usually light in areas. Points to check include the horizontal and vertical shield lines on the obverse and the star centers on the reverse. Not more than 1 coin in 10 has all star-centers sharply defined (although they may be visible). Sharply struck coins with excellent eye appeal are rare. Cherrypicking is the order of the day to find one! All are of Reverse Style B, with a star pointing under the right serif of the E in STATES.

Mintage and Distribution Notes: Production of the new Shield nickels began on June 11, 1866, and supplies began reaching circulation soon afterward. There seems to have been a wide call for the new coins, this demand continuing through the next several years. No bank or Treasury caches or hoards have ever been reported.

Great problems were experienced with the dies and the hard nickel alloy, and it was unusual for a pair of dies to last for more than 10,000 impressions. “The die usage was so heavy that the engraving department had trouble keeping up with the demand and coinage was actually halted on occasion while waiting for fresh dies.”1

At the time, there were only a few dozen rare coin dealers, at most, in the United States. Likely, some stocked Proofs, but ignored circulation strikes. The epicenter of the trade was in Philadelphia, and in this and subsequent years, there was a strong interest and lively trade in patterns (see appendix A).

Characteristics and Appearance: All seen are well struck, save for a common lightness on certain horizontal shield lines, usually on the right side; however, the separation of the lines is complete.

The obverse die has a tiny, raised center dot, made by a compass point or center punch. It has been suggested that this may have been a handmade die using various elements, but no difference has been located with regard to the positions of the letters, denticles, and the like in relation to each other.

Most Proofs I have seen are sharply detailed. In the past, some circulation strikes with prooflike surfaces have been sold as Proofs. Today, anyone with an elementary awareness of Reverse Style A (with a prominent center dot and with 5 repunched at upper left; used only for Proofs in 1866) and Reverse Style B can determine which is which.

The obverse die is well basined, giving curvature to the field where it meets the border. The reverse is plane (flat), but the field is somewhat wavy, as can be seen if an example is held at a certain angle to the light.

The obverse die was highly repolished late in its career. All known Proofs are from Reverse Style A (see chapter 4) with a star pointing under the left serif of the final S in STATES.

Mintage and Distribution Notes: Estimates for Proof mintages (800–1,200) vary widely. Likely, Proofs were restruck in later years as demand for them arose.

Repunched Date—Several obverse dies show repunching, with two (Fivaz-Stanton numbers FS-301 and 302, a.k.a. Breen-2461/2462 and Fletcher-8/10) being breathtaking—with virtually the full earlier date being bold and offregister to the east by the width of half a numeral and two-thirds of a numeral, respectively. (See the selected bibliography for information on the Fivaz-Stanton, Breen, and Fletcher texts.) These have been known for many years but have achieved publicity only since the 1960’s. Few repunchings anywhere in American numismatics are this dramatic.

Missing Leaf—No outside leaf on the second group at right; three leaves instead of four. Edward L. Fletcher describes only three dies with this feature from 25 dies listed, but Howard Spindel (in his computerized Shield Nickel Viewer) has found five.