Racketeer nickel

Racketeer nickel. This term refers to a specific type of altered United States five-cent piece minted from 1883, which became infamous for its role in a widespread fraud scheme. The coin, officially known as the Liberty Head nickel, initially lacked the word "CENTS" on its reverse, a design oversight quickly exploited by criminals. These altered coins were gold-plated and passed as five-dollar gold pieces, defrauding countless businesses and the public during the Gilded Age.

History

The Liberty Head nickel, designed by United States Mint Chief Engraver Charles E. Barber, entered circulation in 1883. Its reverse featured only a large Roman numeral V within a wreath, omitting the denomination's unit. This flaw was almost immediately recognized by confidence tricksters, most notably the swindler Joshua Tatum, who allegedly masterminded the racket. Tatum would purchase inexpensive items with the gold-plated nickels, receiving change for a five-dollar coin, and his success spawned countless imitators across the United States. The resulting public outcry and financial losses pressured the Mint to hastily modify the coin's design within months of its release, adding the word "CENTS" below the V.

Design and specifications

The original coin's obverse features a left-facing profile of Liberty wearing a coronet inscribed with "LIBERTY," with the date below. The reverse displayed a simple wreath of wheat, cotton, and corn encircling the Roman numeral V. Its specifications matched other nickel coins of the era, with a weight of 5 grams, a diameter of 21.21 mm, and a composition of 75% copper and 25% nickel. The modified design, introduced partway through 1883, added "CENTS" in a prominent font, a change that persisted for the remainder of the series until its replacement by the Buffalo nickel in 1913.

Counterfeiting and detection

The fraud was executed by electroplating the nickels with gold, creating a convincing passable imitation of a half eagle to the unwary. Detection relied on weight, size, and design details; the nickel was significantly lighter than a genuine five-dollar gold piece and lacked the intricate reeding on its edge. Furthermore, the portrait of Liberty on the nickel differed substantially from the Indian Head design on the contemporary half eagle. News of the scam spread via newspapers like The New York Times, and merchants were advised to listen for the distinct "ring" of gold versus base metal.

Numismatic significance

The 1883 "No CENTS" Liberty Head nickel is a prized item for collectors, with examples in high grade commanding substantial premiums. The story of the racket adds a layer of American folklore and criminal history to the series, increasing its appeal. Notably, the famous 1913 Liberty Head nickel, of which only five are known, is considered one of the greatest rarities in American numismatics, though it is distinct from the earlier altered pieces. The episode remains a classic case study in the importance of clear coin design for preventing fraud, taught by institutions like the American Numismatic Association.

In popular culture

The tale of the racket has been referenced in numerous television shows and literature dealing with Old West cons and Gilded Age history. It is frequently cited in true crime anthologies and documentaries about famous swindlers, often highlighting the exploits of Joshua Tatum. The coin itself occasionally appears as a plot device in historical fiction novels and films set in the late 19th century, symbolizing a period of rapid industrialization and associated chicanery. Its legacy endures in numismatic circles and beyond as a colorful anecdote from the history of United States currency.

Category:Coins of the United States Category:Nickel (United States coin) Category:Counterfeit coins Category:1883 works