The 1862-S quarter eagle shares the same story as many coins minted in San Francisco during the Civil War. It is a story of mainly low mintages and heavy circulation, especially the lower gold denominations like the quarter eagle. Because of this, the majority of pieces that remain from the original mintage of just 8,000 pieces are in lower grades. As such, this issue is extremely scarce to very rare in about uncirculated grades and especially so in uncirculated condition, in which only a few pieces remain.

During 1862, it became obvious that the Civil War would not been put to rest easily. Slavery is generally regarded to be the main cause of the Civil War, sometimes called the 2nd revolution, but in fact it was just a small part of the real cause. There were great differences between the Northern states, which formed the Union, and the Southern states which had seceded to form the Confederacy in early 1861. Not only politically, but also socially and culturally there was not so much uniformity as could be expected for a country which had become independent after a long war with Great Britain in the 18th century.

To preserve the Liberty that their fathers had fought for, severe battles raged during the war. In many of these battles, black soldiers fought alongside whites on the side of the Union. Making up approximately 10% of the total number of soldiers on the side of the Union, the black regiments consisted of many former slaves who had escaped from parts of the country that now formed the Confederacy. The first successful of these were formed after the United States government officially authorized Brigadier General Rufus Sexton to form five regiments of African American soldiers on August 25, 1862. The first were sworn in on September 27 of the same year, serving from the Union occupied city of New Orleans as the First Regiment of the Louisiana Native guards.

However, it was not the first attempt to create an all black Regiment. Earlier the same year, after the Confederates fled from Port Royal, South Carolina, the First South Carolina Volunteer Infantry (Colored) was formed. It constituted of former slaves, only recently freed when the Union army had occupied the area. The African Americans which were part of the regiment, however, ironically had not volunteered freely, making the Regiment a soon failure.

The many Regiments of African Americans which were created during the later years of the War were often treated differently from their fellow white soldiers. Fighting against their former masters, many were captured and tortured, often to death by the Confederate Army. The Confederate army often specifically attacked regiments of African Americans, as for example on April 12, 1864 at Fort Pillow, Tennessee. After they had surrendered, all black soldiers were violently murdered, and the massacre even led to U.S. congressional investigation. Within the army, however, life was not easy as black soldiers were still often discriminated, even by other Northerners. For example, after June, 1863 their pay was lower than what the whites received, and black soldiers also had to pay for their own clothing, unlike white soldiers. Even when repealed in 1864, it was a preview of the struggle for equal rights which would be fought for many long years after the Civil War.

The 1862-S is a coin in a distinct rarity class, like many other Civil War issues. However, prices are relatively low compared to other series. Estimates of the total number of known examples range from under 40 to 75. The true number, including damaged and cleaned pieces will probably be around the latter. Examples are not easily found in any grade, making true estimates hard to make. When located, any 1862-S is a very historic coin to own, surviving from a very tumultuous period of American history.