On March 3, 1865, Congress stayed in session all night. Among the House deliberations was a bill introduced by Representative John Kasson that would authorize the striking of a three-cent piece in nickel. During the Civil War, hoarding of precious metals was widespread. Numerous alternatives had been tried, including private tokens, encased postage, postal currency and fractional currency; all were unpopular.

The new coins had a silvery appearance, unlike the yellowish caste of the copper-nickel cents. This was useful in drawing the old, unwanted pieces of fractional currency from circulation, and it was also an aid in replacing the non-circulating silver three-cent pieces. The silver three-cent piece was widely hoarded and had not been seen in circulation since the dark days of 1862. Since that time, the silver three-cent piece had been minted in very small numbers.

The new nickel three-cent piece was immediately popular, due to its appearance in large numbers in 1865 and its usefulness in replacing the fractional currency. These coins could also be used to purchase postage stamps (three cents being the postal rate at the time), thus eliminating the need for the hoarded copper-nickel cents.

• • Years Minted: 1865-1889