I have attached two 1968 pennies one normal and the other with wide spacing on both sides of the "M" in America. I assume this is from the die being worn down and resurfacing which causes the letters to get ground away and become smaller? The first image is the normal one. the spacing at bottom of A and M and the spacing from top of M to E seems to be larger on the next two images. Also the dot after UNUM is missing on the second penny.
Quite observant! Die polishing is this cause with the residue filling the devices. There is two effects happening. Die flow, metal moving outwards and stretching occurring. Now, look at 2nd pic, the upper bar of the E. Note it is skinnier. This is because the face of the die has been worn down to make the rounded bevel near the edge. The device has become shallower(reversed image remember). New dies, when first cut, the devices are angle cut into the die, deepest is thin, becoming thicker towards the die face. Hope that makes sense, I have some diagrams I'll look for and post.
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