Why are 1883/1896 Liberty Nickels Priced Higher?

[WoodenJefferson]

 

It seems that Liberty head nickels from 1883 thru 1896 in circulated condition command higher prices than the rest of the mint years, sans the 1912-S.

 

I know one of the reasons is the mintage numbers and the fact that these nickels were only produced at the Philadelphia Mint. This factoid is due to a law on the books that did not allow coins that did not contain silver or gold to be produced at the branch mints.

 

Anyone have any idea if this was true and where/when did this omission law originate?

 

 

 

Note: I thought I’d at least do a thought provoking post as my 2999th

 

[Conder101]

Don't have an answer for the second question at the moment, but a possibility for the first was the panic of 1893. The resulting recession/depression meant that all money on had was needed for survival and people could not afford to sent coins aside. This meant that these coins circulated longer and more heavily than normal, thus fewer survivors and higher values.

[DWLange]

The biggest factor in the survival of Liberty Nickels is the time frame in which they began to be saved by collectors. This did not happen until the mid-1930s, by which time most of the earlier pieces had become so worn or mutilated that they had long since been withdrawn and recoined. The Mint did this regularly, and very few coins more than 40 years old were ever in circulation.

 

As for the branch mints not coining minor pieces, there was not a prohibition on this. The enabling legislation for these mints simply specified gold and silver only, or, in the case of the Charlotte and Dahlonega Mints, gold alone. This was done to keep their production limited to the coins actually needed in those regions, as well as to keep down overhead. The limited number of minor coins needed outside of the East and Midwest made it wise to confine this production to Philadelphia. Only the Industrial Revolution of the later 19th Century brought down prices to the point where minor coins were needed nationwide. A law passed in 1906 finally made it possible for the branch mints to coin minor pieces, though New Orleans ceased production before it had a chance to participate. Thus, no 1909-O VDB cents!

[WoodenJefferson]

Gentlemen, thank you for your replies.