The uncertainty of the U.S. Civil War disrupted everyday life in a number of ways. In the realm of money, people began hoarding coins: They thought that if the North lost, coins would be more likely to retain their value than paper money. To address the ensuing shortage of coins, in April 22, 1864, Congress authorized the U.S. Mint to begin producing a bronze two-cent piece, which would be made from the same alloy as the Indian Head penny.

The obverse of the two-cent coin featured a shield, with the year underneath it and the motto “In God We Trust” above it. In fact, this was the motto’s first appearance on American money, prompted by a rise in religious sentiment during the Civil War. After appearing on the 1864 two-cent coin, the motto was included on a variety of other coins in 1866. In 1956, Congress made it the official motto of the United States; in 1957, it was added to all American paper currency.

The two-cent piece had actually been proposed earlier in the century—in 1806 and again in 1836. Some speculate that third proposal succeeded because the Postal Service had recently set its local mail rate at two cents.

The first year’s two-cent coins actually came in two varieties, known today as small motto and large motto. As their names imply, the large motto coins have “In God We Trust” printed in larger type than the small motto coins. The small motto two-cent pieces are considered scarcer today than their counterparts.

The two-cent coin did not last long. With the rise of the nickel and the easing of coin hoarding, the two-cent coin fell out of popularity after the Civil War and was discontinued in 1873, making it one of the shortest-lived coins in American history.


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