The History of the 1883 Racketeer Nickel: A Coin Deception for the Ages

In 1883, the  U.S. Mint introduced a new coin—the Liberty Head Nickel—which would soon become the centerpiece of one of the most infamous stories in American numismatic history. Known today as the Racketeer Nickel, this seemingly ordinary five-cent piece earned its name through a clever scheme of deception that captured the imagination of the public and collectors alike. What started as a minor design flaw turned into a lucrative scam that resulted in one of the most sought-after coins of all time.

The Collectibility and Market Value of the 1883 Racketeer Nickel

The  1883 Racketeer Nickel holds a special place in numismatics, not only for its intriguing origin tale but also for its collectibility among enthusiasts. The value of this coin in the current market is determined by several factors, including its condition, provenance, and whether it has been involved in notable finds, such as an archeological dig. Coins with a verified history or unique stories, like the Deadwood Racketeer Nickel, often fetch higher prices due to their significance, even if they are not in mint condition. The popularity of the coin stems from its interesting story of deception and quick adaptation by the U.S. Mint, making it a favorite among collectors. While many Racketeer Nickels may appear on platforms like eBay, those with documented provenance and ties to historic events or digs are particularly prized, standing out in the numismatic world.

The Birth of the Liberty Head Nickel and Its Fatal Flaw

The U.S. Mint released the Liberty Head Nickel in 1883 to replace the  Shield Nickel. The obverse of the coin displayed a left-facing bust of Lady Liberty, a familiar design also featured on the $5 gold coin, known as the Half Eagle. The reverse, however, included a fatal flaw—while it featured the Roman numeral "V" to indicate five cents, the coin didn’t actually say "cents" anywhere on its surface. This omission would set the stage for one of the most audacious coin frauds of the 19th century.

At first glance, the Liberty Nickel looked strikingly similar to the $5 Half Eagle. Both coins had similar designs, and importantly, they were nearly the same size. It didn’t take long for clever minds to see an opportunity for deception.

The Gold-Plating Scheme: From Nickel to Half Eagle

One of the most famous stories from this era is that of a deaf-mute Bostonian named Josh Tatum. According to legend, Tatum noticed the similarity between the Liberty Head Nickel and the $5 gold coin, particularly the missing word "cents." Tatum, determined to take advantage of this oversight, gathered a thousand of these nickels and had them gold-plated by a local pawnshop. Armed with these gold-plated coins, he set out to test his theory: could he pass them off as $5 gold pieces?

Tatum's plan worked brilliantly. He would enter stores, purchase small items like cigars or candy worth five cents, place the gold-plated nickel on the counter, and walk away with $4.95 in change. He never claimed the coins were worth $5, but the merchants, assuming the coin was a Half Eagle, gave him the correct change. Tatum was said to have amassed a small fortune, reportedly collecting as much as $15,000—a staggering sum at the time—before his scheme was discovered.

The Trial and Tatum’s Unlikely Victory

When Tatum was finally caught, he was taken to court for fraud. But his lawyer, demonstrating the same cunning as his client, argued that since Tatum was unable to speak, he never verbally misrepresented the coins. Tatum had simply handed over the coins, and the store clerks made their own assumptions. Remarkably, this defense worked, and Tatum was acquitted of all charges.

The U.S. Mint, realizing the potential for continued fraud, quickly redesigned the Liberty Nickel later that year, adding the word "cents" below the Roman numeral “V” to prevent further confusion.

The Deadwood Discovery: A Racketeer Nickel Unearthed

While the story of Josh Tatum is largely regarded as a tall tale, the Racketeer Nickel itself remains very real—and continues to captivate collectors. In 2001, archeologists in Deadwood, South Dakota, made an exciting discovery. While excavating part of the Old West city’s Chinatown district, they uncovered a cache of over 200 coins. Among these were brass religious medals, gaming tokens, and one particularly special coin: an 1883 Racketeer Nickel.

Although the Deadwood Racketeer Nickel was in poor condition and worth only about ten cents, its significance lies in its provenance. Coin experts Margie and Kevin Akin, who examined the find, noted that this may be the only Racketeer Nickel discovered during an archeological dig. Its place in history, rather than its value, is what makes this particular coin so special. It offers a tangible connection to the world of deception and the Old West—a true treasure for numismatists.

The Racketeer Nickel in Collectors' Eyes

Today, Racketeer Nickels hold a unique place in the world of coin collecting. Although gold-plated versions can be easily replicated, making them a common find on platforms like eBay, genuine Racketeer Nickels with provenance are highly prized. The story behind the coin—the deception, the swift actions of the U.S. Mint, and the colorful legend of Josh Tatum—makes it one of the most collectible coins from the late 19th century.

Numismatics is filled with fascinating stories, but few coins capture the imagination like the Racketeer Nickel. Collectors love coins that come with a story, and this coin has one of the most remarkable of all. Its origin tale—whether entirely true or embellished—adds an undeniable allure.

The Old West and Racketeer Nickels: Cuff Buttons, Not Poker Chips

Adding to the legend, the Racketeer Nickel also made its way into Deadwood, a city synonymous with Old West history. Reports from the Rapid City Journal tell of young men using these gold-plated nickels as cuff buttons, allowing them to pose as if they were wearing genuine $5 gold coins. Interestingly, newspaper accounts from the 1880s reveal that Deadwood residents weren’t trying to pass the nickels off at poker tables, likely to avoid serious consequences. Instead, they simply flaunted them as status symbols, a quiet nod to the clever deception.

The End of the Liberty Nickel

Despite the controversy surrounding the Racketeer Nickel, the Liberty Head Nickel remained in production until 1913, when it was replaced by the Buffalo Nickel. However, the legacy of the Racketeer Nickel endured, not only as a collector's item but as a cautionary tale of how even small design flaws can lead to significant consequences.

The Racketeer Nickel is more than just a coin—it's a piece of Americana. It tells a story of ingenuity, trickery, and an era when the U.S. Mint's oversight gave rise to one of the most infamous coin frauds in history. To this day, collectors treasure the coin for its unique role in U.S. coinage history and the stories that surround it.

Whether you come across a battered Racketeer Nickel in a coin collection or hear the tale of Josh Tatum’s gold-plated ruse, remember that you're holding more than just a piece of metal—you're holding a slice of American history, rich with intrigue and humor, and a reminder of how one small oversight can lead to an unforgettable legend.

Josh Tatum and the 1883 Racketeer Nickel Scheme

The story of Josh Tatum's role in the 1883 Racketeer Nickel legend is one of the most famous tales in numismatic history. Tatum, a deaf-mute, allegedly recognized that the newly minted Liberty Head Nickel was close in size to the Liberty Head Half Eagle—the denomination of a $5 gold coin. Noticing that the nickel only displayed the Roman numeral "V" without the word "cents," he devised a scheme to gold-plate the coins and pass them off as fraudulent nickels. According to the legend, Tatum would go from store to store, purchasing low-cost items such as a five-cent cigar, paying with the gold-plated nickels, and receiving $4.95 in change. His trips to the pawn shop to have the coins plated, and the way he fooled unsuspecting store owners, have become a part of coin collecting folklore. When caught, Tatum's lawyer argued that his client never verbally misrepresented the coin’s value due to his inability to speak. This clever defense led the prosecutor to drop the charges, resulting in Tatum's acquittal. Whether entirely true or not, this story further adds to the mystique and fraudulent history surrounding the Racketeer Nickel.

FAQ

What is the 1883 Racketeer Nickel?

The 1883 Racketeer Nickel refers to a version of the Liberty Head nickel issued by the U.S. Mint in 1883. This coin initially lacked the word "cents" on its reverse, featuring only the Roman numeral "V" to represent its denomination. Fraudsters, noticing its similarity in size to the $5 gold coin, gold-plated the nickels and passed them off as $5 pieces, leading to the nickname "Racketeer Nickel."

Why was the 1883 Racketeer Nickel gold-plated?

The nickel was gold-plated by swindlers who took advantage of the missing "cents" inscription and the coin's resemblance to the $5 Liberty Head gold coin. By plating the nickel in gold, they successfully deceived merchants and the public, passing it off as a much more valuable $5 gold coin.

Who was Josh Tatum, and what is his connection to the Racketeer Nickel?

Josh Tatum, a deaf-mute Bostonian, is often associated with the Racketeer Nickel legend. According to the story, Tatum took advantage of the nickel's design flaw by plating the coins in gold and using them to receive change for a $5 coin, despite only making small purchases. Tatum’s defense claimed he never verbally misrepresented the coins, and he was acquitted of any charges.

What makes the 1883 Racketeer Nickel valuable to collectors?

The Racketeer Nickel is valued for its fascinating historical background and the story of deception that led the U.S. Mint to quickly revise the coin by adding "cents" to the design. It holds a unique place in numismatic history as a coin that tells a memorable story. The value also depends on factors such as condition, provenance, and whether it was part of an important find, like the coin discovered in an archeological dig in Deadwood, South Dakota.

How much is an 1883 Racketeer Nickel worth today?

The value of an 1883 Racketeer Nickel can vary significantly based on its condition and provenance. An unplated or standard Liberty Head Nickel without the word "cents" might be worth $10 to $50, while a well-documented gold-plated Racketeer Nickel with historical significance could be valued much higher, particularly among collectors who appreciate its backstory. Faked versions, however, are often worth very little.

What is the difference between the 1883 "Without Cents" and "With Cents" nickels?

In early 1883, the Liberty Head nickel was issued without the word "cents" on the reverse, simply featuring the Roman numeral "V" for five. Later that year, to prevent fraud, the U.S. Mint added "cents" to clarify its denomination. The "Without Cents" version is the one commonly associated with the Racketeer Nickel.

How can you tell if a Racketeer Nickel is authentic?

Authentic Racketeer Nickels can be difficult to verify due to the ease of gold-plating nickels even today. However, provenance—such as a nickel tied to a notable historical find, like the Deadwood coin—can boost a coin's authenticity. Coins that lack such documented history or are modern replicas are often worth very little.

Why did the U.S. Mint change the design of the 1883 nickel?

The U.S. Mint changed the design of the 1883 Liberty Head nickel to include the word "cents" after people began fraudulently plating the "Without Cents" version and passing it off as a $5 gold coin. This quick adjustment was made to prevent further deception and clarify the coin's true denomination.

What is the significance of the Deadwood Racketeer Nickel?

The Deadwood Racketeer Nickel is significant because it was uncovered during an archeological dig in Deadwood, South Dakota, in 2001. Though the coin is in poor condition and worth little monetarily, its discovery during an excavation gives it special historical provenance, making it a rare find among Racketeer Nickels.

Is the story of Josh Tatum passing Racketeer Nickels real or a myth?

The story of Josh Tatum using gold-plated nickels to scam merchants is often regarded as a mix of fact and folklore. While the coins were indeed used for fraud, the details of Tatum’s scheme, especially the claim that he was acquitted due to his inability to speak, remain largely apocryphal. Nonetheless, the story adds to the coin’s enduring legacy.

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