Nickel (United States Coin) - Jefferson Nickel (1938–present)

Jefferson Nickel (1938–present)

When the Buffalo nickel had been struck for 25 years and could be replaced without an act of Congress, the Mint moved quickly to replace it. Although the Fraser design is popular today among numismatists, it did not enjoy that status in 1938, and there was no public outcry at the decision. In January 1938, the Mint announced an open competition for the new nickel design, with the winner to receive a prize of $1,000. Anticipating the 1943 bicentennial of Jefferson's birth, competitors were to place his portrait on the obverse, and a depiction of his house Monticello on the reverse.

On April 24, Felix Schlag was announced as the winner. His design featured the portrayal of Jefferson which would be used on the nickel until 2005, closely conforming to the former president's bust by sculptor Jean-Antoine Houdon, which is to be found in Boston's Museum of Fine Arts. However, the model differs from the nickel that was struck for circulation because it featured a view of Monticello from an angle, and a style of lettering officials did not like; Schlag was required to change both. Either through a misunderstanding or an oversight, Schlag did not include his initials in the design; they would not be added until 1966. Production began on October 3, 1938; they were released into circulation on November 15. According to contemporary accounts, the Jefferson nickel was initially hoarded, and it was not until 1940 that it was commonly seen in circulation.

With the entry of the United States into World War II, nickel became a critical war material, and the Mint sought to reduce its use of the metal. On March 27, 1942, Congress authorized a nickel made of 50% copper and 50% silver, but gave the Mint the authority to vary the proportions, or add other metals, in the public interest. The Mint's greatest concern was in finding an alloy that would use no nickel, but still satisfy counterfeit detectors in vending machines. An alloy of 56% copper, 35% silver and 9% manganese proved suitable, and this alloy began to be coined into nickels from October 1942. In the hope of making them easy to sort out and withdraw after the war, the Mint struck all "war nickels" with a large mint mark appearing above Monticello. The mint mark P for Philadelphia was the first time that mint's mark had appeared on a US coin. The prewar composition returned in 1946; all nickels struck since then have been in 75% copper and 25% nickel.

In 1966, a small change was made to the design to add the initials of the designer (FS) to the obverse, underneath Jefferson's portrait. In commemoration of that change, two specimen 1966 nickels with the initials were struck and presented to him. Coins struck at any mint between 1965 and 1967 lack mint marks, which were omitted as the Mint replaced the silver circulating coins with copper-nickel. Beginning in 1968, mint marks were again used, and on the nickel were moved to the lower part of the obverse, to the right of Jefferson's bust. From 1971, no nickels were struck for circulation in San Francisco—the 1971-S was the first nickel struck in proof only since 1878.