Yes perfectly legal to do, especially when that one was probably made years ago. You can still do it today as well, you can do just about anything you want to with your coins, cut them up, cut them out, pound them out flat with a hammer, fold them up, dissolve them in acid, drill holes in them, but if they are cents or nickel five cent pieces it is illegal to MELT them. (Any other coin is OK to melt.)