1871 1c Shallow N, FS-901 MS BN

1871 Cent Production: The Mint Act of March 3, 1871, provided much-needed authorization for the Mint to redeem the nickel and bronze coinage that was clogging up commercial channels. Because these coins didn’t have a bullion value close to their face value, and because their legal-tender status was limited, banks had nowhere to go to turn in excess coinage. Now the Mint was given the legal authorization Bold N to do what it had been doing for the past few years anyway.

In the decade following, more than 31 million copper-nickel cents from 1857 to 1864 were melted. By 1909, about half the original mintage of coppernickel cents was turned in and destroyed.

More than 55 million bronze cents were melted in the years following 1871. The metal was reused to Shallow N make more cents. This seemingly wasteful cycle of redeeming older coins and recoining the metal into new coins went on until 1874, when the Mint started reissuing older coins alongside the new pieces.

The Shallow N reverse is found on a small number of coins from this date. As collector appreciation increases, this is becoming a very high–premium coin.

Survivability: This is one of the rarest dates in the series. Most new 1871 cents went though a quick round trip from the Mint, to the banks, and then back to the Mint for recoinage. As a result, most survivors are coins that escaped into circulation and stayed there for a long time. Most are in very low grades.

Collecting Challenges: Problem-free examples are very diffcult to locate; however, a majority of this issue is found well struck. Select attractive examples. The Shallow N reverse is very scarce, but dealer awareness is presently low. This may offer an opportunity for collectors.

Collecting Circulated Pieces: The optimal collecting grade for circulated coins is F-12. Most examples are in very low grades. Searching for quality within the grade desired is important. Examples in Extremely Fine and About Uncirculated are very hard to locate and are always in demand. Avoid problem pieces with pitted surfaces, heavy scratches, or dents. Don’t forget to check for the very scarce Shallow N reverse.

Collecting Mint State Pieces: The optimal collecting grade for Mint State coins is MS-63. These are typically well struck, but attractive examples are particularly elusive. Most are dull red-brown, with more brown than red. Coins with even color and vibrant luster, regardless of color, are very desirable. Many collectors prefer solid brown coins compared to streaky red-brown pieces.

Collecting Proof Issues: These typically come with moderate mirrors and red-brown coloration. It seems that no example of this date comes with the crisp, early-die-state detail that can be found on other dates in previous years. The coins always have an over-polished look rather than the fine polishing and sharp contrast seen on Proofs of other years. As a result, Proofs of this date are very rare with cameo contrast.

Both Shallow N and Bold N reverses are found for this date in Proof format. Neither is worth a premium, as collector awareness is very low. Also, there is a scarce date variation with the numerals 7 and 1 touching. These are usually poorly made and may be mistaken for circulation strikes.

The scarce Shallow N reverse offers a challenge for collectors, and the premium for these has been increasing as collector awareness increases. An MS-65RB example sold for $13,000 in 2005. The Shallow N dies are given variety designations Snow-4 or Snow-5. The S-5 has a misplaced digit variety on the obverse. There are only a few other die varieties. The variety with the 7 and 1 touching, S-2, is very rare.

When the cent was changed to bronze in 1864 it was deemed necessary to add a legaltender limit to the authorizing legislation. At first it was 10¢, but shortly after it was dropped to only 4¢. This did little to ensure the cent’s circulation—necessity and convenience alone made the new coins successful. However, by actually stating a legaltender limit, rather than just releasing them into circulation, the banking establishments could point to a reason to refuse them in larger quantities. As the Mint’s production of cents exceeded the demand in the late 1860’s the coins started to accumulate with no legal outlet.

To remedy this situation, the Mint Act of 1871 authorized the Mint to redeem minor coinage (all coins previously minted in copper and nickel alloy, five cents and below) and to reissue the cents. Accordingly, the Mint took in millions of these minor coins and melted them all. The reissued coinage up until 1874 was in the form of newly minted cents.

Below is the record of bronze cents redeemed and reissued, including the quantity of copper-nickel cents redeemed and melted. It seems that in 1874 someone decided that the redeemed cents could just as easily be reissued without being melted and recoined. The coinage of cents during the 1870’s was heavily influenced by this decision. In 1877 alone, enough cents were redeemed and reissued to make the mintage of new coins almost unnecessary.

1871 8,569,848 7,275,091 1872 5,751,073 5,635,999 1873 2,641,157 2,661,362 1874 3,015,870 4,051,908 372,500 1875 2,204,701 3,937,8723,926,000 1876 3,106,895 5,932,7235,599,500 1877 2,870,433 9,908,1489,821,500 1878 1,993,125 8,213,9998,242,500 1879 870,342 3,515,3273,357,500 1880 577,130 3,626,5013,342,000 1881 81,393 765,3951,132,500 Totals31,681,96755,524,32535,794,000 Source: National Archives; reprinted in Steve/Flynn 1995