TheWheatPenny.com

A Short History of the United States Mint

The United States Mint was established when the country was still very young. The framers of the constitution recognized the importance of a national currency for the ease of trade and commerce. The plans for the Mint were developed by then Secretary of the Treasury Alexander Hamilton and, on April 2 1792, The Coinage Act was passed by Congress. This created the national Mint and authorized the first Mint building, which was constructed in Philadelphia – the capital of the USA at the time. In addition to being the first Mint, it also had the distinction of being the first federal building built under the constitution.

The first director of the Mint was David Rittenhouse, who got the position with his skills as treasurer of Pennsylvania from 1777 to 1789 and his acquaintance with George Washington. Rittenhouse was a famous scientist and had contributed significantly to the fields of surveying and astronomy. His biggest contribution to US coinage was in hand striking the very first coins to test the new equipment. The material to form the coins was actually flatware provided by Washington and, as a token of his gratitude to Washington’s help in creating the Mint, Rittenhouse gave the coins to him. Although this first round of production was not approved by Congress, Rittenhouse was still a prominent figure in US Mint history, and in 1871 Congress paid tribute by approving a coin to commemorate his life

The Chief Coiner of the first US Mint was Henry Voigt, who was famous for clock making and steamboat development. He was well acquainted with Thomas Jefferson, as the repairman for his clocks and watches. In 1791 he applied for a job in the new Mint and was considered well qualified for the Chief Coiner position because of prior coin production experience working in a German Mint when he was younger. During his stint at the Mint, he was credited with the creation of some of the first coin designs.

Several branch facilities opened since the development of the first national Mint in 1792, and the need arose for an identifying feature on each coin to show where it was made. Those were, of course, mint marks. The first branch mint facilities were in Charlotte, North Carolina and Dahlonega, Georgia- both from 1838 to 1861. There was also the New Orleans, Louisiana branch, which opened in 1838 as well, but lasted until 1909.

The national mint is now in Washington D.C,  as it is the current capital city of the nation, but Philadelphia is home to the Mint’s largest facility and one of four coin-producing mints that is currently active. The Philadelphia Mint building has changed four times since the inception of Mint operation in 1793. Coins produced in Philadelphia had no mint mark until 1980, except for the Susan B. Anthony dollar and the wartime Jefferson nickel. In 1980, the “P” mint mark was started. Despite losing the national Mint title to Washington D.C., Philadelphia remains the site of the national engraving and design departments of the mint and master die production for U.S. Coinage is also conducted there.

The 1982 Lincoln Cent : Copper Content Change

The 1982 Lincoln Cent may look just like its predecessor, the 1981 Lincoln Cent, and it certainly still has the same buying power, albeit somewhat small, at 1/100^th of a dollar.  Or does it? Recently, the stockpiling and sale of high content copper pennies, that is, all cents minted before 1982, has reached record highs.  Interest in the coins has peaked as copper prices rise, and even with the federal ban on coin melting for their metal value, older copper pennies have brought premiums almost double their face value.  So what did this new penny change, to make the ones before it so much more valuable?

The single reason interest in pre-1982 pennies is a precious metal.  Not silver or gold, however, but copper.  OK, so copper is far from being a precious metal, but its also far from being cheap.  The rising cost of copper means that pre-1982 pennies hold more value in the copper content they contain, than the face value of the coin.  Hoarders and investors hope that by buying the high copper content coins now,  the value of the copper make a hefty profit when copper prices continue to increase.

What does the U.S. Mint think about this?  Well, definitively, they are not too keen on the idea, as they have pressured congress to pass laws restricting the export of these coins to foreign countries, and have disallowed the melting of coins for their metal content.  This is probably the only reason that pre-1982 pennies are still found in circulation at all. In addition to the regulations about one cent coins, the nickel has also been targeted because of its relatively high melt value, as it is now worth more than face value do to the high copper content as well.

In 1982, the U.S. Mint realized that the copper penny was becoming too expensive to produce, so they began looking for an alternative to reduce the metal costs of the coin.  The solution came by the way of plating the coin with copper (because mint officials knew that the penny should remain their traditional bronze color) over a base coin containing zinc.  So little copper is used in the manufacture of these new coins, only 2.5 percent copper vs. 97.5 percent zinc, that it would be impossible to gain any additional value in copper from these coins.  Because this switch happened in September of 1982, it is quite possible to find 1982 high copper content pennies, but they are are harder to sort out without a precise digital scale, as the only discernible difference is the new pennies slightly lighter weight.

Investors are always looking for the next edge over the market, and some people will hedge their bets on copper pennies because despite the ban, the coins provide a verifiability known amount of copper, easily measured, and this represents a sound investment to people who believe the price of copper will continue to rise.  So, in the near future, it may be wise to find good examples of coins before 1982, as a mass melting of these coins will certainly make those gaps in coin albums harder to fill.

10 Things You Don’t Know About United States Pennies

There is probably one in your pocket right now and it has had a long and complicated history before coming into your possession. No, it’s not pocket lint. It is, of course, the penny. Here are 10 obscure facts that you may not know about this unassuming coin. This information probably won’t make you the life of the party, but it will give you credence among the coin collecting crowd.

1.Did you know that the current U.S. Penny contains less than 5 percent copper, despite its bronze appearance? The inner core is made of zinc, and was introduced in 1982 to reduce the manufacturing costs of the Lincoln Cent.

2. Additionally, the Lincoln Cent has had its composition changed a total of five times from its introduction in 1909. The original issue was a coin of 95% copper and the remainder equal parts tin and zinc. The first change was to the wartime steel version, comprised of steel coated zinc in 1943. Next was the change to permit the use of recycled shell casings from WWII in 1944, and that changed again back to the prewar composition in 1947. Finally, original composition was usurped again with the copper coated zinc coin, introduced in 1982.

3. The design of the front the Lincoln Cent, called the obverse, has changed only once during its now 103 year run. That change was to incorporate the initials of the designer V.D.B. on the shoulder of Lincoln.

4.The design on the reverse of the Lincoln Cent has changed a total of four times. The original design incorporated the initials of the designer, V.D.B., although this was removed within one year, creating the second reverse without the initials present. The third change was to honor Lincoln’s 150 anniversary of his birth, and placed the Lincoln Memorial in place of the Wheat Ear design. Lastly, a new reverse, depicting a motto and shield, was introduced in 2010.

5.The average penny lasts 25 years.

6. In March of 1973, the penny was the first coin made and distributed by the U.S. Mint. They distributed 11,178 of the copper cents.

7.The Lincoln memorial penny is the only coin depicting the same person’s likeness on both sides. There is the bust of Lincoln on the obverse side, but he is also on the reverse, as the statue, in between two of the columns in the Memorial building.

8.The penny was the first coin to feature a historical figure when Abraham Lincoln was placed prominently on Victor David Brenner’s design of the Lincoln Cent in 1909.

9. In the early days of the U.S. Mint, copper was in short supply to make the penny. So the American citizens at the time contributed their copper belongings, such as copper pots, to the Mint in order to be used for scrap.

10.The first penny was almost as big as a modern day half dollar. It was first struck in 1793. The penny remained at that size, although many people found it troublesome to use because of its size, until 50 years later.

Grading Lincoln Wheat Cents

Pennies have been the perfect starter coin for beginning numismatists for many reasons.  The low denomination, coupled with the high mintages for almost all years, and a continuous minting since 1909, makes the starting and completing a collection attainable for all but select key dates.  So it is no surprise that penny collections range in quality from disfigured to pristine, and it is the job of the collector to sort them all out, from best to worst.  To do just that, follow this guide to grading Lincoln Cents.

In order from best to worst (Wheat Ear reverse)

MS-70, Perfect Uncirculated.  This coin has no wear, no marring scratches or bag marks or blemishes.  A gem of a coin, well struck and in fine detail.

MS-65, Choice Uncirculated.  Almost perfect, but with traces of fingerprinting, or tiny bag marks.  No wear at all, and must still contain full mint luster, all blemishes must be slight.

MS-60, Uncirculated. This coin’s rating is based solely on the absence of wear and obvious marring.  The coin may contain numerous bag marks, blemishing, uneven toning, or loss of luster.

AU-50, About Uncirculated.  This coin is almost uncirculated, except for slight traces of abrasion on highest points of the jaw, cheek, and wheat stalks.  Three quarters of mint luster should be present.

EF-40, Extremely Fine.  Wear now showing markedly on the cheek, jaw, and the hair above the ear.  Each stalk on reverse is clearly defined high points on the stalks are worn.

VF-30, Choice Very Fine.  Noticeably flat spots on the cheek and jaw, ear and bow tie, hair worn but details still present.  On reverse, lines of stalk tips are worn but defined.

VF-20, Very Fine.  Almost all details remain in hair, flat spots present around cheek and jaw.  Lines on reverse are still visible and clear, but worn

F-12, Fine.  At least some detain is still present in the hair, cheek and jaw are smooth.  On reverse, wheat stalk lines show separation, but no detail.

VG-8, Very Good.  Outline of hair present, but most details are missing, The legend and date are weak but clear.  Some detail and lines appear in wheat stalks on reverse.

G-4, Good.  Nearly  all detail gone, mostly outlines.  Wheat ears are worn flat but visible, with at least some kernels visible.

AG-3, About Good.  Outline of hair present, all details missing.  Date and legend are worn but readable.  Parts of motto merge with wreath on reverse.

The biggest misconception about grading coins lies in the thought that higher graded coins are “prettier” coins, and that correspondingly, a higher ranked coin will always have more “eye appeal” than a lower graded coin.  This is simply not true.  The fact is that the distinction between uncirculated and circulated coins, the first major separation between coins, takes into account only the condition of the wear of the coin.  Wear is defined by the parts of the design that were removed by abrasion. Grade coins based on the highest grade in which it has all detail specified by the grade.

The brilliance, tone, and scratch marks on the coin are important, but only to sort uncirculated coins from other circulated ones.  Coin grading is subjective to this distinction as well. For example, an uncirculated coin may be labeled as any number between 60-70, as the coins involved are of an already uniform standard enough to permit fine differences in grading between 61 and 62 etc.  Circulated coins however, are expected to be only labeled as declinations of 3, 4, 8, 12, 20, 30, 35, 40, 45, 50, and 55.  Also, it is not necessary to add a “+” or “-” to any coins, the grade should speak for itself.  Grade your coins consistently and accurately, and when the time comes to sell the collection, your notes will give you invaluable insight into what your coins are actually worth.

The Designer of the Wheat Penny: Victor David Brenner

Victor David Brenner was a medalist, sculptor, and engraver who is well known as the designer of the United States Lincoln Cent. He was born as Viktoras Barnauskas in June 12, 1871 in Lithuania to Jewish parents. In 1890 he emigrated to the United States and changed his name to Victor David Brenner to ease the process of obtaining American citizenship. When he arrived in America, he worked the gem and seal engraving and sculpting trade that his father taught him and took night classes to master English.  Before his career really took off, he also studied in Paris with the noted French medalist, Oscar Roty, where he showed his work and received awards at the Paris Exposition of 1900.

Back in America, Brenner’s career reached its peak with his Lincoln coin design which was chosen by the 26^th President, Theodore Roosevelt. In 1908 Roosevelt had posed for a Panama Canal service medal to be created by Brenner. While Roosevelt posed, Brenner suggested the idea of honoring Abraham Lincoln with a coin. Roosevelt had already been impressed by a centennial plaque depicting Lincoln that Brenner was working on, so the president gave his approval for the designing of the Lincoln coin.

The new coin was commissioned by the United States Mint. It was the new copper Lincoln one cent coin, commemorating the 100^th anniversary of the birth of the 16^th President of the United States, Abraham Lincoln. Lincoln’s profile was on the front and the border of circular wheat stalks was on the back. It is now known as the “wheat penny”.

The design of the Lincoln cent, when Brenner forwarded it to the Mint Director, initially bore his whole name. It was inspired by the signatures on the coins of other countries, such as the gold coins which Brenner’s mentor, Oscar Roty, designed for France. However, the Director substituted the initials, VDB, for the name.

The initials didn’t last long either, though. After production began, controversy surrounded the initials’ prominent placement on the reverse bottom between the wheat stalks. Some thought that the initials were too prominent, others were confused about the meaning behind the letters. In response to the criticism, the U.S. Secretary of Treasury at the time, Franklin MacVeagh stopped production on the Lincoln coins with initials and ordered new Lincoln cents without the initials. In 1918, the initials were returned, but this time they were smaller and located on the obverse side of the coin, next to Lincoln’s shoulder.

Approximately 28 million wheat pennies with the first set of initials were made by the Philadelphia Mint in 1909, but only 484,000 were made by the San Fransisco Mint. Those are known as 1909-S VDB wheat pennies, denoting the small “s” mark in pennies for San Fransisco minted coins. Because these pennies were so rare, they are one of the most popular for collectors. The production on wheat pennies ended in 1959, after a 50 year run. The wheat design was replaced with the Lincoln Memorial, which was chosen as a tribute to the 150^th anniversary of Lincoln’s birth.