Silver half dimes had been struck from the early days of the United States Mint in the late 18th century.

Minting of the Shield nickel for circulation was suspended in 1876 for a period of over two years due to a glut of low-denomination coinage, and it was struck in only small quantities until 1882.

[2] The Civil War caused most American coins to vanish from circulation, with the gap filled by such means as merchant tokens, encased postage stamps, and United States fractional currency, issued in denomination as low as three cents.

Although specie (gold or silver coins) was hoarded or exported, the copper-nickel cent, then the only base metal denomination being struck, also vanished.

[3] In 1864, Congress began the process of restoring coins to circulation by abolishing the three-cent note and authorizing bronze cents and two-cent pieces, with low intrinsic values, to be struck.

On March 3, 1865, Congress passed legislation authorizing the Mint to strike three-cent pieces of 75% copper and 25% nickel.

According to numismatic historian Walter Breen, Congress's "immediate infuriated response was to pass a law retiring the 5¢ denomination, and another to forbid portrayal of any living person on federal coins or currency.

"[6] Industrialist Joseph Wharton had a near-monopoly on the mining of nickel in the United States and sought to promote its use in coinage.

[8] Pollock prepared a bill authorizing a five-cent coin of the same alloy as the three-cent piece and a total weight not to exceed 60 grains (3.9 g).

Reverse designs proposed by Longacre included one with a number 5 within a circle of thirteen stars, each separated from the next by rays.

[b] According to numismatic author Q. David Bowers, Longacre's obverse design is "one of the most patriotic motifs in American coinage".

[13] Based on the coat of arms from the Great Seal of the United States, Longacre's design focused on the shield, or escutcheon as a defensive weapon, symbolizing strength and self-protection through unity.

[14] The crossed arrows, whose ends are visible near the bottom of the shield, symbolize nonaggression, but imply readiness against attack.

Bowers does not consider the reverse design an artistic work, but one which is purely mechanical, obtained by punching characters and devices into a steel hub.

[11] | Seeking alternatives to the difficult-to-work copper-nickel alloy, in June 1867 Longacre proposed that the five-cent piece be struck in aluminum.

The new Mint director, Henry Linderman, objected to the proposal, stating that the price and supply of aluminum were as yet uncertain, and that the metal was too expensive to use in a minor coin.

[19] The new coins tended to accumulate in the hands of merchants beyond the legal tender limit, but banks refused to accept them beyond the one-dollar maximum.

[20] In 1871, Congress alleviated the problem by passing legislation allowing the Treasury to redeem unlimited quantities of nickels and other low-denomination coins when presented in lots of not less than $20.

[10] As the Treasury had a large stock of nickels in storage, only small numbers were struck over the next few years; full-scale production began again on December 12, 1881.

[29] Charles E. Barber became chief engraver in 1880, and the following year was asked to produce uniform designs for the nickel, the three-cent piece, and a proposed copper-nickel cent.

While the redesign of the two lower denominations did not occur, in 1882, Barber's design for the nickel, with the head of the goddess of Liberty on the obverse and the Roman numeral "V" on the reverse, was approved.