1877 1c MS BN

1877 Cent Production: This is the rarest date in the Indian Head cent series. The low mintage of 852,500 accounts for its relative rarity, but the real reason for its scarcity is tied to the economy of the time and its effects on the redemption program called for in the Mint Act of 1871.

Since 1873 the country had been suffering from a severe depression. By 1877, 27% of the working population was jobless, and those who did have jobs saw their wages cut, in many cases nearly in half.

Other major events made this one of the toughest years, economically, since the Civil War. The reconstruction of the South was terminated as a bargaining chip in the controversial election of Rutherford B. Hayes. A nationwide railroad strike crippled the economy further and brought with it the birth of the modern labor movement.

This had a very important impact on the redemption of the minor coinage. Huge amounts of these coins flooded back to the Mint. Enough nickel three-cent and fivecent pieces were turned in that, except for Proofs, the Mint stopped production of those denominations. Nearly ten million cents were turned in to the Mint this year, of which 9,821,500 were reissued (see further discussion under 1871). In addition to the reissues, the number of cents minted was the smallest since 1823.

Survivability: Even with a mintage close to one million pieces, the number of surviving 1877 cents is unusually low. Only two obverse dies and a single reverse die are known on circulation-strike examples. The single reverse die is of the Shallow N style last used in 1872. It suffered only a minor die clash, and no die cracks, over its lifetime striking of 1877 cents. The average die life during this era has been calculated to be 150,000 to 250,000 pieces. This “miracle die” could not possibly have struck all the cents minted this year without totally deteriorating or busting into pieces. There might have been more than one reverse die used but presently no others are known. The 1878 Mint report says that three obverse and six reverse dies were in stock for coinage of cents, but then says that only two reverse dies were used, and the four remaining dies were used in 1878. This additional die may be one of the Proof dies.

There are a few possibilities for the missing coins, including: 1. Perhaps the Mint record shows examples struck with 1876 dies early in

Collecting Challenges: This is the top coin on every Indian Head cent collector’s list. Due to the high cost and diffculty in finding acceptable coins, many collectors reduce their standards and buy anything to fill the void. I suggest waiting until the right coin becomes available. Cost should be a secondary consideration. Attractive coins will serve their owners very well when it comes time to sell. This date is always expensive.

Collecting Circulated Pieces: The optimal collecting grade for circulated coins is F-12. It is very diffcult to find accurately graded examples, especially in Extremely Fine or About Uncirculated grades. Dealers and grading services tend to grade this date liberally because of its rarity. Properly graded coins often carry a significant premium over pieces reported in pricing guides.

The diamond detail on the lower ribbon is usually shallow and is quickly worn down to only three diamonds. It is very diffcult to find full-diamond examples in circulated condition. When found they command an added premium.

Problems such as rim dents, scratches, and unnatural color may be acceptable if the price reflects the problem. If fully priced, wait for a problem-free example. Many coins, actually Fine or Very Fine, have been wire-brushed to simulate mint luster. These are dangerous to buy, as they have a very low resale value.

Counterfeits: Counterfeits are numerous for this date. Luckily, there are only two obverse dies and one reverse die known on authentic pieces. If the diagnostics for these are known, the counterfeits will be easy to spot. Coins with altered dates are typically altered from 1879- or 1875-dated coins. Both these dates always have the Bold N reverse. False-die counterfeits are typically seen with a reverse die that was transferred from a common-date coin, also with the Bold N reverse. Even though the majority of counterfeits are found with the Bold N reverse, this should not condemn all 1877 cents found with this style reverse. The Proofs of this year all have the Bold N reverse, so it is possible that a circulated Proof might be mistaken for a fake. The best protection is to buy coins certified and authenticated by a major grading service. It is strongly recommended that you purchase this date from a reputable dealer who offers a guarantee, has a return policy, and is easy to locate. This will protect your investment.

Collecting Mint State Pieces: The optimal collecting grade for Mint State coins is MS-63RB. Look for well-struck examples with even coloration. Although the diamond detail for this issue is typically shallow, it is usually fully visible on well-struck Uncirculated coins. The best indicator for a full strike is full feather tips. Minor problems are acceptable if they are reflected in the price. Problem-free examples are highly sought after and will generally get higher premiums than expected.

Although the 1872 and 1871 cents are rarer in full red condition, this date is much pricier due to higher collector demand. Beware of cleaned examples. Because of the great difference between red-brown and full red examples, there is a temptation for unscrupulous individuals to lighten the color in an attempt to get a higher premium.

Perhaps the finest 1877 Indian Head cent is the example pictured on page 131 from the collection of Stewart Blay. This coin set a record price when it sold uncertified for $71,300 in Stack’s Americana sale, January 1999. Today it is graded MS-66RD by PCGS. Stewart Blay can easily boast of having the finest collection of small cents (Flying Eagle, Indian Head, and Lincoln) ever assembled.

Collecting Proof Issues: All Proofs of this year are struck with Bold N reverse dies. Three obverse dies were used along with three reverse dies. One of the reverse dies has a bulging right pennant of the T in CENT. This is a die first used in 1872 and is found on some examples from all dates from that year until 1878.

The actual mintage of Proof cents for this year (and all years prior to 1878, for that matter) is unknown. Walter Breen in his 1977 Complete Encyclopedia of U.S. and Colonial Proof Coins gave a figure of 510+ coins as the mintage. Research by R.W. Julian revised the estimate to 900. The 510 figure is the quantity of complete sets sold, not including gold issues. At least 400 smaller sets of only the nickel and copper coins were also distributed. These numbers represent coins sold, not produced. It is likely that at least 1,500 coins were produced, with the remaining unsold pieces being destroyed or released into circulation. The quantity of survivors in population reports is similar to the 1876 issue.

Examples are usually readily available, and these are priced much higher than other Proof issues of similar rarity due to date-collector demand. However, prices are much lower than the Mint State circulation-strike issue. Some collectors will substitute a Proof 1877 for a circulation strike if the price differential is too great.

The issue is typically found with slightly subdued mirrors. One of the die pairings is weak on the right side. Some are found singly struck; these will have rounded edges. (Proofs are normally double struck, giving them very sharp edges.) Enough coins are usually available for collectors to be able to find a suitable example, without problems. Gems are also available, but cameo examples are quite scarce.

There are no varieties known for this year. Collectors might want to acquire both the Proof and circulation-strike issue as an example of the Bold N and Shallow N reversedesign styles.

An example is known struck on a copper-nickel one-centavo piece from Venezuela. It is graded MS-61 by NGC. In 1876, ten million one-centavo coins were struck for the Venezuelan government at the Philadelphia Mint.