Lot 2463
1862 Indian Head Cent. PCGS graded MS-65. Well struck with lovely warm golden toning. A Premium Quality coin. Pop 216; 1 in 65+, 58 in 66, 4 in 66+, 8 in 67 (PCGS # 2064) .
Due to panic hoarding of change in the early days of the Civil War, a premium of 4% developed in July 1862 on copper-nickel Cents and similar small change. In a vain effort to satisfy the demand the mint forced itself to a rate of production even higher than that of 1858 (which it was replacing the old Large Cents with the new, smaller format Flying Eagles). By the end of July the weekly issue amounted to 1,200,000 pieces. One-third of this total was reserved for Philadelphia, the remainder going to the other large cities. No applicant anywhere received more than $5 worth.
Unfortunately, the $478,000 worth of small cents produced in 1862 was a small sum when contrasted with the approximately $25,000,000 or more in silver coin that had disappeared. The demand for the Cent pieces was never satisfied. The conditions in Philadelphia, which were duplicated in other cities, were described in the Public Ledger of July 18th:
"The difficulty among small shopkeepers, provision dealers in the markets and the city generally, in making change, has caused an extraordinary demand for cents, and all that can be commanded at the Mint are eagerly bought. Though many of those who desired cents stood in line for hours, waiting an opportunity to get into the Mint, they had to go home without them, as the supply on hand was exhausted before half the applicants were accommodated."
The existence of a premium on the Cent pieces in July and the later months of 1862 is thus explained. For a time the copper-nickel coins provided the only small change.
Estimated Value $900 - 1,000.
The Coltrin Family Collection.
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| Realized $805 |
