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In 1965, Why Did America Start Making Clad Coins Instead Of Solid Base Metal?

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Sap's Avatar
Australia
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 Posted 08/28/2023  11:08 pm Show Profile   Bookmark this topic Add Sap to your friends list Get a Link to this Message Number of Subscribers
I have a question, related to an issue that came up in this recent thread that I hadn't really considered up to now.

In 1965, America replaced its circulating silver coinage with base-metal coinage (except for half dollars, which retained silver at a reduced level until 1970). These new base-metal dimes and quarters were "clad" - that is, they had a copper core, and a cupronickel outer layer on both sides.

This is all well known.

The reason why they switched from silver to base-metal is also well-known: the price of silver was going up and the solid silver coins were no longer economical to produce.

What I don't know, and can't seem to find on the Internet easily because everyone is answering those first two questions, is why the US government chose clad coins, rather than solid cupronickel coins (or some other solid alloy).

Practically every other country, when they replaced their silver coins with base-metal, used a solid, single-alloy planchet - no cladding, plating or other treatment required. Australia, Britain, New Zealand and most other Commonwealth countries used solid cupronickel as their silver substitute; so did Japan. Canada used pure nickel. European countries used a range of different alloys - but nobody else used clad. The only non-US-made clad coinage I could find, were those issued by Thailand.

Producing clad planchets is somewhat more difficult and expensive than producing solid cupronickel planchets; cladding was originally made by detonating explosives between two (or in this case, three) separate pieces of metal. The force of the explosion fuses the pieces of metal together. This all sounds overly complicated and expensive to me, especially given that the primary reason for getting rid of silver was as a cost-saving measure.

Even the new, debased-silver half dollars were clad, rather than a solid debased-silver alloy. Here the reasoning is perhaps more certain: they wanted the new debased-silver half dollars to still "look silvery", and everyone in 1965 would have known that a coin made of solid 40% silver alloy looks black and awful after even just a brief period in circulation. So they needed some way to "brighten up" the silver surface, and cladding is one viable option of doing this. But this logic does not hold for the two newly non-silver coins, the dime and quarter.

So... why use clad?

I can think of a few possible reasons:

1. America was already using a solid cupronickel coin: the nickel. They thus perceived that they couldn't use the exact same alloy for the nickel and the dime, since the nickel was still going to be larger than the dime. Historically, nickels were bigger than dimes because dimes were made of silver and nickels weren't. Having a "big coin" worth less than a "little coin", when they were made of the exact same stuff, would have seemed ridiculous. Canada has this situation right now, where their nickel is bigger than the dime, even though they're both made of the same stuff (nickel-plated-steel), but back in 1965, doing this might have been highly unpopular. Cladding thus made dimes and quarters look "more expensive" than nickels.

2. As an anti-counterfeiting measure, as noted in the thread I linked to above. Clad coinage certainly has that distinctive "striped edge" that's hard to replicate without complicated equipment. I'm not sure how often people would have "checked the edge" of their coins to see if they were genuine, though.

3. Vested interests between US politicians and DuPont, who had invented the explosive-cladding process and was keen for new government contracts. Vested interests have certainly determined US coinage policy at other times - yes, Artazn (zinc) and Crane & Co. (paper), I'm looking at you when I say that.

4. The DuPont explosion welding technique was brand new in 1965; the technology had been invented in 1962 and literally just been patented in 1964. Using it would therefore be "futuristic" and therefore cutting-edge fashionable; a way of advertising US ingenuity and technological prowess to the world.

None of these reasons individually make a lot of sense, though all together, they might add up. So, was there any discussion, either in the public sphere or in Congress, as to why they chose clad coinage over more conventional alloys?
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Brandmeister's Avatar
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 Posted 08/28/2023  11:48 pm  Show Profile   Check Brandmeister's eBay Listings Bookmark this reply Add Brandmeister to your friends list Get a Link to this Reply
Well, the reason for the cupronickel clad over copper core seems pretty basic. The coins had to work in vending machines. That meant a similar mass and electrical characteristic to existing silver dimes and quarters. Since the five cent cupronickel coins already were accepted in machines, apparently that made the hurdle lower to jump for that metal combination.

You can read the full report of the Battelle Memorial Institute study on Google:

https://books.google.com/books?id=P...ge&q&f=false

Maybe their recommendation to the Mint and Congress will contain some specific reasonings on the alloys and methods chosen.
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cladking's Avatar
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 Posted 08/28/2023  11:55 pm  Show Profile   Bookmark this reply Add cladking to your friends list Get a Link to this Reply
The primary reason was to fool the public into thinking nothing had happened. They wanted something without any silver that looked like silver. Debasements often result in inflation because of the perception the money is less valuable.

Secondarily they wanted something that could be used in vending machines which were very popular in those days since coins had real value. Solid metal coins that had the same signature as silver were too exotic for widespread coinage. So "Explosion Bonded" cu/ ni clad copper became the choice.
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Edited by cladking
08/28/2023 11:56 pm
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Brandmeister's Avatar
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 Posted 08/28/2023  11:59 pm  Show Profile   Check Brandmeister's eBay Listings Bookmark this reply Add Brandmeister to your friends list Get a Link to this Reply
Do the clad coins actually have the same electrical signal as silver coins? I know that current coin sorting machines can separate them easily. It seems more plausible that they have an electrical signature similar to a standard nickel, which vending machines would have already registered as a pass in 1964.
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kbbpll's Avatar
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 Posted 08/29/2023  02:22 am  Show Profile   Bookmark this reply Add kbbpll to your friends list Get a Link to this Reply
Vending machines makes the most sense to me as a reason, without having any specific technical knowledge to back that up. Back in 1912-1913 the Hobbs Manufacturing Company single-handedly delayed the new Buffalo nickel over concerns about whether their Counterfeit Detection device would still work. Those companies still had a lot of clout in the early 60s.

Here's an article that backs it up, without specifically saying why cladding worked. https://www.coinworld.com/news/us-c...s-coins.html
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oriole's Avatar
Canada
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 Posted 08/29/2023  06:20 am  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
The vending machines in Canada had no trouble accepting solid nickel coins, so I don't see why vending machines would need clad coins.


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Slerk's Avatar
Russian Federation
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 Posted 08/29/2023  07:06 am  Show Profile   Bookmark this reply Add Slerk to your friends list Get a Link to this Reply
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United States
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 Posted 08/29/2023  08:59 am  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
Such an intersting discussion, thanks everyone!
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 Posted 08/29/2023  09:01 am  Show Profile   Check nss-52's eBay Listings Bookmark this reply Add nss-52 to your friends list Get a Link to this Reply
I can think of a few reasons:

1) cost
2) politics (contract goes to "favored" vendor)
3) weight

I'm leaning towards #2
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BStrauss3's Avatar
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 Posted 08/29/2023  09:19 am  Show Profile   Bookmark this reply Add BStrauss3 to your friends list Get a Link to this Reply
You needed a composition with the same mass (within some tolerance) and the same diameter so that the coin acceptors would accept coins.

You can build some pretty complex technology. Chris showed off a German Payphone at Numismatics International three months ago that had a hardwired logic board to decide based on a bunch of sensors to accept/reject the coin AND what its value was (the phone accepted IIRC 10 and 50 pfennig and 1 and 2 mark coins.

Here's a write-up on one kind of design... https://hackaday.com/2022/04/10/coi...n-you-think/
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Sap's Avatar
Australia
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 Posted 08/29/2023  10:52 am  Show Profile   Bookmark this reply Add Sap to your friends list Get a Link to this Reply
I have a problem with the "vending machine" hypothesis, that it was because they needed to make the new coins the same mass as the old coins. The problem is, if that was their goal, they failed... because they're not the same mass.

Silver quarter: 6.25 grams
Clad quarter: 5.67 grams

That's just above a 10% difference in weight. Surely a mass-based coin discriminator that allowed for a 10% weight difference would allow quite a large number of counterfeits and foreign coins through as well. Vending machine technology was better than that in the 1960s.

Nor can clad coins have the same electromagnetic signature as silver. Silver has quite unique properties - it's highly conductive, and thus has a high eddy current effect. No alloy or admixture of copper and nickel can hope to match it. Try it and see: grab one of those supermagnet coin testing slides, put a silver quarter on it, then put a clad. The silver shows significant eddy current braking, the clad... barely any at all.

I'm having trouble idealizing any technology that would look at a clad quarter, and look at a silver quarter, and they both land in the "pass" bucket. There is a reason why silver quarters and dimes end up in the reject bin at Coinstars: they simply don't match the parameters for clad quarters and dimes, so get rejected. Yet, they must have worked back in the 1960s, otherwise there'd have been all kinds of furore and havoc as vending machines suddenly became "unreliable" when using the new coins, in the eyes of the public. "If Coca-Cola won't accept the new coins, then I won't either". But if the vending machines of the 1960s were so poor at discriminating between a 6.25 gram silver coin and a 5.67 gram non-silver coin, then the government could have used pretty much any non-magnetic alloy (such as solid cupronickel) instead. When Britain, Australia, New Zealand etc replaced their silver coins with solid cupronickel coins, the new coins all weighed exactly the same as the old ones (to the nearest 0.01 gram; silver is denser than cupronickel, so the new coins had to be slightly thicker in order to attain the same mass), and all their vending machines were 100% "fooled" into accepting the new coins.

Which leads me back to the original question, if slightly rephrased now: if solid cupronickel worked just fine in vending machines of the 1960s, why did the US use cupronickel-clad-copper, and not solid cupronickel?
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Brandmeister's Avatar
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 Posted 08/29/2023  11:08 am  Show Profile   Check Brandmeister's eBay Listings Bookmark this reply Add Brandmeister to your friends list Get a Link to this Reply
Same mass, diameter, and thickness. That effectively fixes both the volume and density. Their options might have been rather limited.

Did anyone read the official 1965 government report? I admit that I was not intrigued enough last night to read all 48 pages.
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Bump111's Avatar
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 Posted 08/29/2023  11:54 am  Show Profile   Bookmark this reply Add Bump111 to your friends list Get a Link to this Reply
I haven't yet read the official report. My theory has always been that it had something to do with strike quality and/or die life. They were pumping out tons of these coins and needed to preserve the dies as long as possible. Perhaps the nickel alloy used for the five cent pieces would have quickly worn or damaged the quarter dies. This might not have affected the dimes a seriously, but they may have wanted continuity in all the reeded edge coins.
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 Posted 08/29/2023  12:08 pm  Show Profile   Bookmark this reply Add nick10 to your friends list Get a Link to this Reply
I've wondered the same as Sap. The general answer I've seen is that clads give the same electical signal as silvers, except as Sap pointed out, Coinstar can tell the difference. OTOH, this might mean Coinstar is discerning the difference via a method not available during the 1960s.

My personal opinion is cladding serves an as easy, visual anticounterfeiting measure. One quarter in 1965 is the equivalent of roughly $3 today, and we're still anticounterfeiting $1 notes via custom paper and unique serial numbers.
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 Posted 08/29/2023  1:21 pm  Show Profile   Check Brandmeister's eBay Listings Bookmark this reply Add Brandmeister to your friends list Get a Link to this Reply
Well, speaking as a former microchip designer who took many electrical engineering classes, I really doubt that the clad coins have the same electrical response as silver coins. YMMV, that is my gut feel, not a stated fact. If that proves to be the case, I will be quite interested to know the exact physics and chemistry mechanism of why it works.

I am going to stick with my guess that the clad coins had a similar EM response as solid 75/25 cupronickel 5 cent coins already in circulation. If vending machines accepted nickels, then clad coins probably wouldn't set off the slug detector.

I think there is a separate line of questioning about how many vending machines in 1965 actually had an electricity-based slug detector. I would speculate that most coin rejectors were based on a simple magnet (to counter steel slugs) or a coin's physical properties like mass, diameter, thickness.
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kbbpll's Avatar
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 Posted 08/29/2023  1:25 pm  Show Profile   Bookmark this reply Add kbbpll to your friends list Get a Link to this Reply
This article lists the criteria https://www.numismaticnews.net/arch...y-collectors

Quote:
a new coin alloy must meet five characteristics: 1. good public image, 2. good wear characteristics, 3. ease of production, 4. use in vending machines, 5. cost and availability of the material

This article mentions the ease of reuse https://nnp.wustl.edu/library/dicti...etail/515490

Quote:
This was a brilliant solution. Not only did it meet all the criteria of a circulating coin composition (including the demanding needs of the vending machine industry) but also considered the metal salvage of this composition. Skeleton scrap of this clad composition could be melted and easily reformulated back into a copper nickel formulation.

The link to skeleton scrap then says
Quote:
What to do with the skeleton scrap of clad strip could have been a problem. But this was solved by the combination of metals. U.S. cent composition of copper coated zinc, for example, could be melted and reformulated into - bronze!
I have no idea why the composition of a clad coin would be any more advantageous to melt than a solid coin of similar composition, but that's what it says.
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