What Happened to the Half Dime?

The half dime, an early American coin, played an important role in the country’s monetary history. Did you know that 5-cent pieces were once called half dimes, not nickels? Introduced during George Washington’s presidency, the half dime was first produced as part of an experiment to replace the British pounds-and-shillings system. In 1792, the Coinage Act introduced the U.S. dollar, setting the stage for a new currency. One silver dollar was worth 10 “disme” or 100 cents. The word “disme” evolved into “dime,” and half dimes became a common coin for many years.

The Early Days of the Half Dime

Not much is known about the first half dismes (the earlier spelling of dimes). There are legends that Martha Washington may have served as the model for the Lady Liberty portrait on the coin’s front, or that George Washington himself contributed silver for the minting. At the time, the U.S. Mint in Philadelphia wasn’t yet fully built. As a result, the first half dismes were reportedly struck in the cellar of John Harper’s saw-maker shop in July 1792.

The coin featured a flying eagle on the reverse side, along with the inscriptions “HALF DISME” and “UNITED STATES OF AMERICA.” On the front, around the Liberty portrait, were the words “LIB. PAR. OF SCIENCE & INDUSTRY.” Around 1,500 silver half dismes were minted, but only a few of these rare coins exist today.

Evolution of the Half Dime

Over the years, many different versions of the half dime were struck, particularly because U.S. coin design and minting processes were still in their early stages. Some of the equipment used was old, which resulted in various coin varieties, though not all were due to errors. In the first half of the 19th century, millions of half dimes were minted to meet the demand for smaller coins. However, during the Civil War, silver and gold coins, including the half dime, disappeared from circulation. People saw them as more valuable in bullion form than in everyday transactions.

The Transition to Nickels

By 1866, the half dime was phased out and replaced by the 5-cent Shield Nickel. This change occurred due to a shortage of coins after the Civil War. Joseph Wharton, a nickel mine and refinery owner, successfully lobbied Congress to produce coins using nickel, a material abundant in the U.S. As a result, a 3-cent nickel coin was minted in 1865, followed by the Shield Nickel in 1866. The Shield Nickel, made of 25% nickel and 75% copper, effectively ended the era of the half dime.

Why the Half Dime Disappeared

The half dime was eventually replaced for practical reasons. Nickel was more affordable and durable than silver, making it a better material for small-value coins like 5 cents. Additionally, coins made of precious metals had become more valuable in their bullion form, leading to the natural decline of silver half dimes. The introduction of the nickel coin solved the problem of coin shortages and provided a more stable currency system.

Coin Name	Year Introduced	Metal Composition	Value
Half Dime	1792	Silver	5 cents
Shield Nickel	1866	25% Nickel, 75% Copper	5 cents

Coin	Portrait on Obverse	Inscriptions on Reverse
Half Dime	Lady Liberty	“HALF DISME,” “UNITED STATES OF AMERICA”
Shield Nickel	Shield with Cross Stripes	“UNITED STATES OF AMERICA,” “5 CENTS”

Conclusion

The half dime was once an essential part of American coinage, introduced during a time when the U.S. was transitioning to its own currency. Its disappearance in favor of the nickel reflects the need for a more practical, affordable, and widely available coin. As a piece of history, the half dime reminds us of the evolving nature of money and the role that economic factors play in shaping a nation’s currency.

FAQ’s