The Indian Head Penny and the Civil War

Did you know that the first one-cent piece or penny ever struck in the United States was created in 1793? We've come a long way since then when it comes to currency, but coins from the past still remain of great value to those who collect them. In particular, many collectors adore the Indian Head coin, also known as the Indian Head penny.

This Indian penny is special because of how the Civil War impacted it. For that reason, the 1859 Indian head penny all the way to the 1863 Indian Head penny all have their own unique place in history and, of course, value. So, if you want to start collecting these kinds of pennies, what should you know about their design, history, and above all, how much is an Indian Head penny worth?

To start off, let's first take a closer look at what an Indian Head penny is exactly.

What Is an Indian Head Penny?

Today, we are used to one kind of penny: the one with the face of Abraham Lincoln on one side and a shield on the other. However, the United States penny did not always look like this. Instead, further back in history, from 1859 to 1909, the US Mint was busy producing Indian Head pennies.

These pennies were different from the original currency used when the United States first came together, and they are also different from today's currency. For that reason, the Indian Head penny is a prime example of currency from the very middle of the history of the United States. It is also a great example of the changes currency went through during the Civil War.

Before the invention of the Indian Head penny, Americans were used to using a much different kind of penny. This original one-cent coin was actually the size of the average half-dollar coin today. Why did the size of the original penny shrink so much, you ask?

It all has to do with the fact that people in California had discovered huge quantities of gold. This started the Gold Rush and as gold became more and more abundant, the price of copper also rose because not as many people were concerned about mining it at the time. As the supply of copper went down and the price of copper went up, making such large pennies was no longer a feasible task.

Making the pennies would cost more money than the pennies were actually worth. For that reason, in 1957, the size of the penny shrunk to the size we are familiar with today. But there was one other major change in the pennies of the time: the amount of copper in the pennies.

The 1859 Indian Head Penny

Before the copper shortage, pennies used to be made entirely of copper. However, since using so much copper was no longer possible due to its high price, the Mint decided to reduce the amount of copper that pennies were made with. The new composition was 12% nickel and 88% copper.

The addition of nickel made the color of the penny brighter and lighter. For this reason, some people nicknamed the penny a "white cent." However, this penny was not known as the Indian Head penny quite yet because the design was that of a flying eagle rather than an Indian head.

It was only in 1858 that the design of the flying eagle changed to that of an Indian head. This change occurred because the Mint found it too difficult to produce the design of the flying eagle. James Ross Snowden, the director of the Mint, chose the design of the Indian head himself.

On the other side of the penny, there was the design of a laurel wreath. However, this wreath would later be changed to an oak wreath. The new penny then went into circulation and was allowed to be used for commerce in the year 1859.

If you're interested in very rare Indian pennies or perhaps one of the most valuable Indian head penny options, you should know that in 1859, some very rare coins came to light. Indian Head pennies have the design of the laurel wreath on the back with five bunches of leaves. But in 1859, some pennies had laurel wreaths with six bunches, making them very rare.

Things were looking up for the future of currency, but no one could have anticipated how the Civil war would soon change the landscape of American currency.

The 1860 Indian Head Penny

The 1860 Indian Head penny was minted just before the Civil War. Before the shortage of materials and metal currency during the Civil War, 1860 actually marked a huge surplus of currency.

The 1860 penny was more or less the same as the pennies of the previous year, except for the design on the back. This year saw the change from a laurel wreath to an oak wreath with the addition of a shield as well. This change likely came about because the curls of the laurel wreath were difficult to strike clearly.

But there was a problem with the supply of cents. This is because, a couple of years before, tens of millions of one-cent pieces had been minted. So many of these cents were printed because they would be exchanged for Spanish silver, something that was very valuable and flowing amply into the United States at the time.

Even so, the number of Flying Eagle cents proved to be too much. The sheer number of them threatened to endanger the cent's status as legal tender. On top of this problem, in 1860, millions more cents were minted (forty million, to be precise), but this time with the Indian Head design.

This resulted in a total of a hundred million pennies in circulation at the time. This, as Snowden himself admitted, was far too many pennies. In New York, there were so many extra pennies that people could request to buy them in bulk. However, the problem of too many pennies would quickly vanish once the Civil War rolled around.

The Civil War and Indian Head Pennies

The Civil War lasted from 1861 to 1865. This war was full of battles between the north and the south, known as the Union and the Confederacy. The cause of the war was rooted in the status of slavery in the United States as well as the expansion further west.

Tensions had been rising between the north and the south years before the war ever started. However, problems really started to come together once the war started officially. One of the biggest problems turned out to be shortages of various materials and supplies.

Not only were there shortages of materials required to fight in the war, but there was also a shortage of metals to make coins. This is likely because most of the metal in the country had to be used to craft bullets and firearms. Because of this, soldiers could no longer be paid in the typical way.

Traditionally, soldiers were paid with gold. However, this was no longer a feasible method to pay soldiers. Instead, paper money started to be used for one of the first times in history, known as greenbacks due to their color. These greenbacks are actually the origin of our green paper money that we still use today.

Greenbacks were only valuable because they were supposedly backed with real gold or silver. However, during the Civil War, gold and silver became virtually impossible to obtain. Silver coins vanished due to shortages.

The only coin left was the Indian Head penny, including the newly minted 1861 Indian Head penny and the 1862 Indian Head penny. This gave people the opportunity to use all of those cents they didn't know what to do with in the years before. Finally, the surplus of cents balanced out thanks to the shortage of other currency.

The 1863 Indian Head Penny

The 1863 Indian Head penny went through several changes due to the unpredictability of the Civil War. Some of these changes included changing the composition of the penny (again). Before this change, however, the premium for cents, especially in Philadelphia, had risen drastically, even as much as 20%.

However, this premium would not last long. In fact, it dropped shortly after because there was a sudden influx of metal tokens, also known as Civil War coins today. They were also known as merchant tokens since they were important for trade.

At this point, people started to become more and more interested in hoardings cents. This is because, after all, they had no idea when a normal supply of cents would be available to buy food and supplies. During this period, the US government noticed that people seemed to agree with the idea of using bronze merchant tokens.

Because of this, the US Mint considered making new cents made out of bronze when it was time to add new coins into circulation. This consideration went against the fact that bronze was not valuable enough to hold up the cent's face value. Today, the 1863 Indian Head penny value is quite a lot more than it used to be when the US Mint first created it.

Of course, if you do manage to get your hands on an Indian penny from this year, the price will vary depending on its condition. An Indian Head penny from 1863 in good condition may not get you much, maybe around $10. On the other hand, if you find an extremely fine specimen, you might be able to get around $100 for it.

There are rare 1863 Indian Heads too, some worth hundreds of dollars.

The End of the War

As the Civil War slowly crawled to a close, the shortage problem was not getting any better. In fact, it seemed to only be getting worse. Towards the end of the war, event the supply of nickel (a very cheap metal) was dwindling.

By 1864, the demand for cents had never been higher and the supply of nickel had never been lower. The proposition of using bronze for cents was still on the table. Some proposed to use French bronze which was a slightly different composition compared to other types of bronze.

French bronze would be mostly copper, around 95%, while the rest would be tin or zinc or a combination of both. The Senate passed this proposition without putting up much of a fight. This decision came in time since the lack of nickel would have made it impossible to mint large numbers of coins.

Some proposed to get rid of nickel in currency completely. After all, most of the nickel for currency in the United States came from a single mine in Gap, Pennsylvania. This mine was mostly depleted and the United States was unable to get more nickel from overseas at the time.

This, of course, was not a sustainable situation for the creation of currency. However, once the war came to an end in 1865, the shortage of various metals for currency slowly became less and less of a problem. Eventually, people stopped keeping large numbers of coins and other metals and allowed them to go back into the banks and into circulation.

However, even there was no longer the frantic problem of trying to figure out how to mint new coins, there were still future problems that Indian Head cents would have to face in the future.

The Most Valuable Indian Head Penny

Even though there are plenty of very important Indian Head penny key dates throughout the Civil War, they mean nothing if you are most concerned about getting your hands on the most valuable Indian Head penny. This is because the most valuable Indian Head penny ever created was not minted during the Civil war but instead several years later in 1877.

After the war in the 1870s, there was the chance for people to redeem their coins at the bank. The bank would take these extra coins and use them for recoinage efforts. As it turned out, so many people had been holding onto Indian Head and Flying Eagle coins (around 30 million of them, in fact) that there was no longer a need to mint any new coins.

Again, there was a surplus of cents and there was no reason for the government to provide any more. More than that, the price of silver dropped at the time. For that reason, people who had been hoarding silver coins for years decided to put those coins back into circulation.

Again, this contributed to the surplus of coins. For several years, the US Mint only produced a few million coins because there was no need to waste materials to produce more. Here we arrive at the 1877 Indian Head penny which is undoubtedly the most expensive Indian Head penny of all time.

This penny is so expensive because, in 1877, the US Mint only produced around 800,000 of them. This is a very low number compared to the mintage of other years.

For this reason, these coins are particularly rare and can have a value of $3,000 or even more. Since many 1877 coins are in excellent condition, you can expect a fortune when selling one.

Other Valuable Indian Head Coins

While the 1877 Indian Head coin may be the most expensive coin of its kind, that does not mean that it is the only valuable Indian Head penny. In fact, there are plenty of Indian pennies made throughout the years that can fetch you more than a hundred dollars. This, of course, is only if you find some of these coins in excellent condition or if you managed to find proof coins that are especially rare.

For example, there is a very valuable coin minted in 1909 known as the 1909-S Indian Head penny. 1909 was the last year that the United States Mint minted Indian Head pennies. After 1909, this penny was then replaced with the Lincoln Head penny that we are all familiar with today.

In 1908 and 1909, the United States Mint was producing only very small quantities of Indian Head pennies. For that reason, Indian Head pennies produced in either of these years tend to be worth quite a lot, usually around a few hundred dollars. However, there is one particular type of Indian Head penny from 1909 that is worth more than the others: the 1909-S Indian Head penny.

The S in the 1909-S penny stands for "San Francisco." This is because this type of penny came from the San Francisco Mint rather than the Philadelphia Mint (or any other type of Mint for that matter). However, being minted in San Francisco alone is not what makes this penny special.

Rather, it is the fact that the San Francisco Mint minted only 309,000 Indian Head pennies in 1909. This is the lowest mintage of any of the other Indian Head pennies, even the 1877 penny. For this reason, the 1909-S Indian Head penny is of particular value for collectors.

The Replacement of the Indian Head Penny

When it comes to prominent Indian Head penny key dates, 1909 is very important because it is the year that the Indian Head was replaced with the Lincoln Head penny. The replacement of this penny was coming for a long time. This is because years before in 1890, Congress had already passed legislation that would allow the Mints in the United States to change the design of coins that have not been changed in the past 25 years.

This change of design would be possible without legislative authorization. Another reason why the design of the Indian Head penny may have changed is because of some complaints made by the president at the time, Theodore Roosevelt. President Roosevelt felt that the United States currency lacked any artistic skill and needed a change.

Roosevelt instructed the Mint to change the design, using a design instead created by a French sculptor named Augustus Saint-Gaudens. Saint-Gaudens not only redesigned the penny but also several other coins such as the half and quarter eagle coins. However, Saint-Gaudens would not be able to create the next design for the one-cent piece because he would die of cancer in 1907.

By 1908, Roosevelt was still unhappy with the unchanged design of the Indian Head penny. February 1909 would be the 100th anniversary of the birth of President Abraham Lincoln who had been assassinated many years before. Many manufacturers were already creating souvenirs with Lincoln's visage, and many people wrote to the Treasury Department asking for a Lincoln coin.

Roosevelt liked the idea of having Lincoln on a coin. Before, no real person had ever been featured on a piece of currency. For example, the Indian Head was the personification of liberty rather than a real person.

Collecting Indian Head Cents

Collecting Indian Head cents has always been popular, even when the US Mint was still producing them in the 1800s. However, once the US Mint stopped producing these coins, there was a surge in popularity when it came to collecting them. In the 1930s, people would buy special books to collect and organize Indian Head coins.

During the 1930s, it was not all that difficult to collect the Indian Head cents because many were still using them as ordinary pocket change. It was only over the years that the Lincoln Head coins started to become more prominent that Indian Head coins became harder to find and more interesting to collect. 

FAQ

What is the Indian Head Penny?

The Indian Head Penny is a one-cent coin that was produced by the United States Mint from 1859 to 1909. Designed by James B. Longacre, the coin features a profile of Lady Liberty wearing a Native American headdress on the obverse side and a wreath on the reverse.

How did the Civil War affect the production of Indian Head Pennies?

The Civil War created significant economic turmoil, leading to a shortage of precious metals. As a result, in 1864, the composition of the Indian Head Penny was changed from a copper-nickel alloy to a bronze alloy (95% copper and 5% tin and zinc) to conserve nickel for the war effort.

Why are Indian Head Pennies from the Civil War era particularly valuable?

Indian Head Pennies minted during the Civil War years (1861-1865) are valuable due to their historical significance and lower mintages caused by the economic conditions of the time. Coins from 1864 are especially notable due to the composition change and the introduction of the "L" on the ribbon of some coins, indicating the designer's initial.

What is the significance of the 1864 Indian Head Penny with the "L" on the ribbon?

The 1864 Indian Head Penny with the "L" on the ribbon is significant because it marks the first time the designer's initial (James B. Longacre) was included on the coin. This variety is rarer and more valuable to collectors due to its unique feature and limited mintage.

How can you tell if an Indian Head Penny is from the Civil War era?

Indian Head Pennies from the Civil War era can be identified by their dates (1861-1865) and their composition. Coins minted in 1864 can be further distinguished by whether they have the "L" on the ribbon, indicating the designer's initial.

What are the key differences between pre-1864 and post-1864 Indian Head Pennies?

Pre-1864 Indian Head Pennies were made of a copper-nickel alloy and did not feature the designer's initial. In 1864, the composition was changed to bronze, and some pennies included an "L" on the ribbon. Post-1864 pennies continued to be made of bronze.

How does the value of Indian Head Pennies vary by year and condition?

The value of Indian Head Pennies varies significantly based on the year of mintage, mintmark, and condition. Civil War era pennies, especially those from 1864 with the "L" on the ribbon, are particularly valuable. Coins in higher grades (better condition) command higher prices.

Are there any notable errors or varieties in Indian Head Pennies from the Civil War era?

Yes, notable varieties include the 1864 Indian Head Penny with the "L" on the ribbon and the "Copper-Nickel" pennies of 1860-1864. Errors such as doubled dies, repunched dates, and misaligned dies also exist and can add value to the coins.

Where can you buy Indian Head Pennies from the Civil War era?

Indian Head Pennies from the Civil War era can be purchased from coin dealers, online auction sites like eBay, and specialized coin auction houses. Reputable coin dealers such as Bullion Shark and auctions.

What should collectors look for when purchasing Indian Head Pennies from the Civil War era?

Collectors should look for coins with clear dates, good detail, and minimal wear. Authentication and grading by professional services like PCGS or NGC are crucial for ensuring the coin's authenticity and condition. Collectors should also be aware of key varieties and errors that can affect the coin's value.