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The two cent piece was devised during the American Civil War, at a time when coins were being hoarded by citizens to protect against inflation. While private businesses addressed this shortage by producing unofficial, non-legal tender currency known as Civil War tokens, the two cent piece was the U.S. government's answer to this problem.
Bronze two cent pieces were authorized by the Coinage Act of 1864, which also cracked down on the minting of unofficial Civil War tokens. The coins proved popular at first, but slowly fell out of fashion in favor of larger denomination currency. Many were redeemed by the government and melted down in 1873, and no more were ever produced beyond that short nine year period.
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