Historic Highlights: Pennies have been standard in American currency since 1793

The Trump administration has announced plans to discontinue minting new pennies, citing the cost of producing the 1-cent coins in relation to their value and importance in the U.S. currency system.

Not surprisingly, the move has sparked heated debate on both sides. President Trump, Elon Musk and others argue that pennies cost 3.69 cents to produce, over triple their face value. The Federal Reserve reports that penny production takes up 4% of the U.S. Mint's operating budget, though only 0.00003% of the U.S. federal budget.

On the flip side, some economists have pointed to the possibility that prices may be rounded up if no pennies are available. In addition, some Americans have sentimental value for the penny, which has been a mainstay in the money supply even as its value decreases.

Today, the Fed reports that 114 billion pennies ($1.14 billion in value) are in circulation, approximately 0.006% of the total money in circulation.

The penny has been minted in this country since 1793 (though a 1-cent piece dubbed the "Fugio cent" for its design, a Latin term depicting sunshine on a sundial, was produced in 1787).

The popular term "penny" itself is borrowed from England, the former ruler of the United States. Many countries commonly call their 1-cent pieces "pennies," including neighboring Canada, which discontinued production of pennies in 2013.

For decades, the U.S. penny was much larger than the coin size we know today. One-cent coins called "large cents" were produced in the U.S. through 1857.

However, they were not the smallest denomination in circulation. From 1793-1857, half-cent pieces were minted, as the value of money was greater than today. In that era, many workers earned less than a dollar per day, and consumer goods were frequently priced on the half-cent.

Like most American coins of the 1700s and 1800s, pennies usually featured some depiction of Liberty, often a bust, on the obverse (front of the coin). Seven different versions of large cents were produced, and the longest-running was the "Coronet" design, a variation on the bust of Liberty, from 1816-39.

The Coinage Act of Feb. 21, 1857, brought major changes to the American currency system. Among its provisions was the abolition of both the half-cent and large cent. The act also created the "small cent," the familiar size of the penny that remains today.

The first "small cent" was the "Flying Eagle cent," depicting the U.S. national bird in flight. The striking coin was designed by James Longacre, the chief engraver of the U.S. Mint, who held the position from 1844-69.

The Flying Eagle cent, however, was difficult to produce and was replaced in 1859 by the Indian Head cent, intended to feature the bust of an American Indian in full headdress on the obverse. The words "One Cent" on the back of the coin were surrounded by an oak wreath, with a shield at the top of the design.

The real-life model for the Indian Head cent is debated today, and some analysts believe the design on the coin is actually a Caucasian woman in the headdress of an American Indian male.

One art historian conceded that the Indian Head cent was "far from a major creation aesthetically or iconographically, and far less attractive to the eye" than the Flying Eagle cent, but "became perhaps the most beloved and typically American of any piece" of money.

Though the half-cent was gone, the penny still had some company of lower-value coins. Two-cent pieces were produced by the U.S. Mint from 1864-72, while 3-cent pieces, which came in both silver and nickel varieties, were produced from 1865-73.

The Indian Head cent remained through 1909, when the design changed to honor Abraham Lincoln on the 100th anniversary of his birth. The obverse of the Lincoln cent has been used by the U.S. Mint ever since, and is the longest-serving design in the history of the Mint.

The likeness of Lincoln was the creation of Lithuanian sculptor Victor David Brenner, who modeled the design from a photo of Lincoln taken on Feb. 9, 1864. Brenner's design was selected by President Theodore Roosevelt, who revered Lincoln.

Brenner also designed the reverse, a symbol of two stalks of wheat. That gave the coin its nickname, "wheat pennies" or "wheat cents."

In 1943, the Lincoln cents were produced with steel due to wartime shortages of copper and tin, which were used in production. The "steel cents" or "steelies" were silver in color when uncirculated, a hue that changed to gray as they wore in circulation.

The wheat-cent design was used through 1958. The following year, on the 150th anniversary of Lincoln's birth, a new design was created for the reverse, an image of the Lincoln Memorial from Frank Gasparro, the assistant engraver of the Mint who later held the chief engraver's position from 1965-81.

Gasparro's other credits include both sides of the Eisenhower dollar coin, as well as the reverse of the Kennedy half-dollar.

At the bicentennial of Lincoln's birth in 2009, the Lincoln Memorial design was replaced by four special commemorative designs, each depicting an era of Lincoln's life. The commemoratives, in turn, were replaced by a permanent shield on the reverse in 2010.

The composition of pennies has changed over the decades. Since October 1982, pennies have been produced with 97.5% zinc and 2.5% copper.

Tom Emery is a freelance writer and historical researcher from Carlinville, Illinois. He may be reached at 217-710-8392 or [email protected].