With precious metal federal coinage hoarded during the economic turmoil of the American Civil War, including the silver three-cent piece, and even the copper-nickel cent commanding a premium, Congress issued paper money in denominations as small as three cents to replace the hoarded coins in commerce.

The advocates were led by Pennsylvania industrialist Joseph Wharton, who then controlled the domestic supply of nickel ore. On the last legislative day of the congressional session, March 3, 1865, a bill for a three-cent piece in copper-nickel alloy was introduced in Congress, passed both houses without debate, and was signed by President Abraham Lincoln.

In 1851, a bill for a three-cent piece in 75% silver and 25% copper was introduced in Congress by New York Senator Daniel S. Dickinson, who wanted to lower postage rates from five to three cents.

[6] Since fractional currency in three-cent denominations did not appear until late 1864, the cent was the only means then circulating of making change from the five-cent note, and came, in 1862 and 1863, to command a premium when sold in lots, of about 4%.

When Pollock proposed legislation for bronze one-, two-, and three-cent pieces, it was opposed by industrialist Joseph Wharton, owner of the major source of nickel in the United States at the time, a mine at Gap, Pennsylvania.

Thaddeus Stevens, one of the most influential men in the House, fought it bitterly, admitting, however, that he objected to it because it adversely affected Wharton's interests.

[10] The bronze alloy was easier to strike than the copper-nickel one, allowing details to be brought forth sharply and extending the life of coinage dies.

The copper-nickel cents had contained only 12% nickel, and even so had been difficult for the Mint to strike due to the hardness of the metal, the use of which damaged equipment and quickly broke dies.

[12] Congress had by the Act of March 3, 1863 authorized fractional currency in the denomination of 3 cents; when these notes reached circulation the following year they proved wildly unpopular.

Action was repeatedly interrupted, first by Ohio Senator John Sherman reporting progress on an appropriations bill, then by Iowa's James Grimes stating that ticket holders for the inaugural festivities at noon were being soaked by rain outside the Capitol, causing some debate as to whether they should be admitted early.

Once female guests were admitted (males were left outside), the Senate passed the three-cent nickel bill without debate, and it was shortly thereafter signed by President Abraham Lincoln.

[15] Carothers wrote that Kasson had opposed nickel coinage, but nevertheless introduced the bill for it during the rush of the final day of the congressional session, "There was no report and no explanation ...

"[18] Numismatic historian Don Taxay suggested that by March 3, 1865, "the wide circulation of the bronze cent and two-cent piece had made a three-cent coin superfluous.

"[19] Mint Chief Engraver James B. Longacre had, since 1849, designed coins with various visages of the goddess Liberty, based on a bust, Venus Accroupie, he had seen in a Philadelphia museum on loan from the Vatican.

Breen suggested that the similarity of design to other Longacre coins has contributed to the low level of collector interest in the three-cent nickel.

The same classical profile that appears on the Indian Head cent, the gold dollar, and the $3 piece is seen fitted with a new hairstyle and a studded coronet inscribed Liberty.

"[21] The act that authorized the three-cent nickel contained a provision requiring the use of the motto "In God We Trust" on all pieces large enough to bear it, but the new coin was deemed too small.

One reason for this was that the base metal five-cent piece would be redeemed by the government if presented in $100 lots pursuant to a provision in the authorizing legislation.

Postmasters were compelled to take three-cent nickel pieces in exchange for stamps, but had difficulty in depositing them in the Treasury in payment of their obligations, as the government would take no more than sixty cents worth of them in a single transaction.

Private individuals and firms similarly refused them beyond the legal tender limit; those with a surplus of base metal coins often sold them at a discount.

[26][27] Congress took no action on a redemption bill, and in 1868 Linderman wrote again in his annual report, urging that the public be allowed to redeem small-denomination coins, as commerce was flooded with them.

[36] Numismatic writer Breen deemed the decision to eliminate the silver three-cent piece and the half dime, which might directly compete with the two copper-nickel coins, a favor to Wharton.

[38] On January 18, 1873, Philadelphia Mint Chief Coiner A. Loudon Snowden formally complained to Pollock that on the new year's coins, the digit "3" too closely resembled an "8".

Pollock ordered Chief Engraver William Barber (Longacre had died in office on January 1, 1869) to redo the logotypes for the date.

[1] Although more than a million were minted in 1881,[1] another blow to the three-cent piece occurred on October 1, 1883, when first-class mail rates were lowered from three to two cents for the first 0.5 ounces (14 g).

[1] As the production of three-cent pieces dwindled, the other non-specie coins prospered, with record numbers of cents being struck in the 1880s to address the need to make change, and for penny arcade machines.

[42] One proposal to revive the three-cent piece was made in 1911, when Mayors Brand Whitlock of Toledo, Ohio, and Newton D. Baker of Cleveland sent a joint memorial to Congress urging its return.

Mint Director George E. Roberts testified and indicated he had no objection to a three-cent piece, as there was at least limited demand for a coin larger than the cent and smaller than the nickel.

[43] The three-cent piece was confirmed as fully legal tender by the Coinage Act of 1965, which proclaimed all coin and currency of the United States good to any amount for payment of public and private debt.

[49] Many of the three-cent nickel pieces were not fully struck, and are missing details of the design; this is because the head of Liberty is directly opposite the III, and the Mint had trouble getting the hard metal alloy to adequately flow to the high points of both sides.