In 1883, the U.S. Mint introduced the Liberty Head Nickel, a coin that quickly became the centerpiece of one of the most notorious stories in American numismatic history. Now known as the Racketeer Nickel, this seemingly ordinary five-cent coin gained infamy through a clever scam that captured the public’s imagination. What started as a simple design flaw evolved into a major deception, making this coin one of the most sought-after collectibles today.
Collectibility and Market Value of the 1883 Racketeer Nickel
The 1883 Racketeer Nickel holds a special place in the world of coin collecting due to its intriguing backstory and its popularity among enthusiasts. The value of this coin in today’s market depends on factors such as condition, provenance, and whether it was involved in notable discoveries, such as archaeological digs. Coins like the Deadwood Racketeer Nickel, which are tied to historical events, often fetch higher prices despite their condition. Its story of deception and the swift corrective action by the U.S. Mint make the Racketeer Nickel a favorite among collectors. While many Racketeer Nickels can be found on platforms like eBay, those with documented histories stand out in the numismatic community.
The Creation of the Liberty Head Nickel and Its Fatal Design Flaw
The Liberty Head Nickel was introduced by the U.S. Mint in 1883 to replace the Shield Nickel. The obverse of the coin featured a left-facing bust of Lady Liberty, a familiar design that also appeared on the $5 Half Eagle gold coin. However, the reverse design included a critical flaw—it displayed the Roman numeral “V” to signify five cents but omitted the word “cents.” This oversight set the stage for one of the most audacious coin frauds of the 19th century.
At a quick glance, the Liberty Head Nickel closely resembled the $5 Half Eagle gold coin. Both coins had similar designs and were nearly the same size, which soon caught the attention of opportunists.
The Gold-Plating Scheme: Transforming Nickels into Half Eagles
One of the most infamous stories from this era involves a deaf-mute Bostonian named Josh Tatum. According to legend, Tatum noticed the striking similarity between the Liberty Head Nickel and the $5 gold coin, particularly due to the absence of the word “cents” on the nickel. Seizing this opportunity, he allegedly gathered hundreds of these nickels and had them gold-plated by a local pawnshop.
Tatum’s scheme was simple yet brilliant. He would visit stores, purchase small items worth five cents, place a gold-plated nickel on the counter, and walk away with $4.95 in change. Though he never claimed the coins were worth $5, merchants assumed they were the more valuable Half Eagle and gave him the correct change. It’s said that Tatum accumulated as much as $15,000—a considerable fortune at the time—before his scam was exposed.
The Trial and Tatum’s Clever Defense
When Tatum was finally apprehended and charged with fraud, his lawyer argued that because he was mute, he never verbally misrepresented the coins. He merely handed them over, and the store clerks made incorrect assumptions. Astonishingly, this defense worked, and Tatum was acquitted of all charges.
In response to the scam, the U.S. Mint swiftly redesigned the Liberty Nickel later that year, adding the word “cents” below the Roman numeral “V” to prevent further confusion.
The Deadwood Discovery: Unearthing a Racketeer Nickel
While the story of Josh Tatum is largely considered folklore, the Racketeer Nickel itself is very real and remains a prized collectible. In 2001, archaeologists in Deadwood, South Dakota, made a remarkable discovery while excavating part of the city’s Chinatown district. Among a cache of over 200 coins, including brass religious medals and gaming tokens, they found an 1883 Racketeer Nickel.
Although the Deadwood Racketeer Nickel was in poor condition and worth only about ten cents, its historical significance lies in its provenance. Coin experts Margie and Kevin Akin, who examined the find, noted that this may be the only Racketeer Nickel ever unearthed during an archaeological dig. Its true value lies in its connection to the Old West and the colorful history of 19th-century American deception.
FAQs
What makes the 1883 Racketeer Nickel so famous?
The 1883 Racketeer Nickel gained notoriety due to its role in a widespread scam where the nickel, missing the word “cents,” was gold-plated and passed off as a $5 gold coin, deceiving merchants into giving incorrect change.
Why did the U.S. Mint redesign the Liberty Nickel?
The Mint added the word “cents” to the design after discovering that the Liberty Nickel was being gold-plated and used to deceive merchants, who mistook it for a $5 Half Eagle.
What is the value of an 1883 Racketeer Nickel today?
The value of a Racketeer Nickel depends on its condition, provenance, and any historical significance it may have. Coins tied to historic events or excavations, such as the Deadwood Racketeer Nickel, often command higher prices.
Is the story of Josh Tatum true?
The story of Josh Tatum is widely regarded as a tall tale, though the deception involving gold-plated nickels did happen. Tatum’s tale has become a part of numismatic folklore.
How many Racketeer Nickels were made?
While the exact number is unclear, many Liberty Head Nickels were initially struck without the word “cents,” making them vulnerable to being used in gold-plating scams.