[The following excerpt is published courtesy of DLRC Press and its author, Gloria Peters & Cynthia Mohon. This information was originally published in 1995 in The Complete Guide to Shield and Liberty Head Nickels
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History of the Liberty Head Nickel Series
In 1881 Col. A. Loudon Snowden, Philadelphia mint superintendent, asked Charles E. Barber, the Mint’s chief engraver, to prepare patterns for 1-cent, 3-cent and 5-cent coins with a common obverse motif. That motif was to be the classic head of Liberty, legend and date. The reverse devices were to be a wreath of wheat, corn and cotton framing respectively Roman numerals I, III and V to designate denomination. In spite of all the striking problems with the cupro-nickel Shield series, the proposed composition of the new coins was 75% copper, 25% nickel.
Patterns were prepared for all three proposed denominations; however, soon the 1-cent and 3-cent were dropped from consideration as being too small and difficult to mint. The Mint director continued to explore the potential 5- cent piece. In 1882 Barber produced patterns of the adopted variety in nickel, copper and aluminum; and shortly thereafter the decision was made to use a similar design for the 5-cent piece.
On January 8, 1883 business strikes of the new Liberty Head design were released. Most of Snowden’s original requirements were embodied in the new nickel. The inspiration for Liberty on the obverse was taken from a Greco-Roman marble sculpture. She wears a coronet inscribed with an incused LIBERTY with wheat ears and cotton boughs/bolls tucked behind. Differences included the circle of 13 stars on the obverse and the legend, which was moved to the reverse. The Motto was in radius on the obverse at the bottom in small letters. A large numeral V centers on the reverse. The weight was 5 grams with diameter 21.2 mm, the same as the subsequent Buffalo (Indian) and Jefferson nickels.
The 1883 Liberty nickel soon encountered an unusual and unexpected problem. The coin did not indicate a value on either obverse or reverse and it resembled the $5 gold coin. Scalawags were soon having the new 5-cent coins gold plated and reeded (some were plain edge) so that they could be passed to innkeepers and shopkeepers at 100 times the face value! The weight of a gold coin and a gilt nickel is different enough to be detected by a wary shopkeeper; however, because communication was much slower in the 1880’s, it is possible people thought it was a new issue gold coin. The gilt nickels were soon to be known as “Racketeer Nickels.”
Snowden quickly ordered Barber to modify the reverse to show its value. The new design moved “E Pluribus Unum” to circle above the wreath and the denomination CENTS was added below the Roman numeral V. As a result, the first design (variety I) is now commonly referred to as the 1883 NO CENTS or 1883 WITHOUT CENTS nickel and the new design (variety II) became the 1883 WITH CENTS. More than 5 million of the NO CENTS nickels were made before production could be halted. They were hoarded by the public and continue to be very popular (and affordable). Though more than 16 million of the 1883 WITH CENTS were made they disappeared into commerce and are fairly scarce today.
Superintendent Snowden was concerned about hoarding and shutting out the small collector of both the 1883 Shield nickel and the 1883 No Cents nickel. This brought about a unique situation in both the minting of proof 1883 nickels and their distribution. Minting of the Shield proof nickel was continued until June 26, 1883 and distributed together with the 1883 N/C and the newly issued 1883 With Cents nickel through this date. With the production of the new 1883 Cent nickel (Variety II) beginning on June 26, the minting of both the Shield nickel and No Cents nickel were halted. Snowden, to further deter hoarding, issued a proof set of the three nickels — Shield, No Cent and With Cents — plus two smaller denominations (total of 18 cents in face value) to the public for 24 cents plus postage throughout 1883. (R.W. Julian)
In October 1901, coining operations were transferred from the old to the new Philadelphia Mint, with a separate area for the minting of minor coins. Production and working conditions were better but it still would be several years before the many problems encountered in minting nickels improved to any appreciative extent.
Citizens in the Eastern states were inclined to call this 5-cent piece a “V” nickel rather than a Liberty Head. The informal name has stuck and today is a common way of referring to this coin.
Mintage of the Liberty Head nickels continued without interruption until late in 1912 when the decision was made to replace the Liberty Head design with James Earle Fraser’s Buffalo/Indian head design beginning in 1913. It is believed that it was at this time one — and very likely two — Philadelphia Mint employees collaborated to strike at least five 1913 Liberty head nickels before those dies were destroyed. This created one of the more fascinating mystery stories in numismatics.