Struck in the middle of the American Civil War, the 1863 cent had the highest mintage of the denomination for the period. A grand total of 49,480,000 pieces were produced for circulation, the highest mintage of the cent since its introduction in 1793, and a number that would not be surpassed until the last years of the 19th century. Despite its high mintage, no coins of this date were seen in circulation until after the Civil War had ended. Federal silver and gold coinage had been hoarded for longer times, but after August of 1862 even the copper-nickel cents were nowhere to be seen in everyday commerce. Their substitutes, privately issued tokens of thousands of different designs, were usually made out of bronze, and the Mint would change the cent to that metallic composition in 1864.

The economy of the United States had long been unstable, and the costly Civil War (on both the Union as well as the Confederate sides) did not help much to improve the situation. Besides the hard times of 1837, 1857 also saw a major banking crisis with many banks going bankrupt. While not directly blamed, it became clear that the current banking system of state banks which ran without federal regulations was not sufficient enough. Added to that were thousands of different varieties of currency notes, issued by the same number of different banks. These so-called 'obsolete bank notes' are very collectable and have become more popular in recent times. Many types are very affordable, and they come in various unusual denominations. Sceneries that are depicted usually echo 19th century America, making them of great historical interest.

Although the obsolete bank notes are in demand in these days, many were issued by fraudulent banks who soon failed after they were chartered by a state. The system had gradually become a mess during the first part of the 19th century, and when the Civil War broke out there had not yet been any improvement. The national currency act of 1863 was to improve the situation. Passed by Congress on March 25 of the year, it was meant to finance the Civil War, and to create a national system of both banks and currency. Supervision by the federal government became stricter, and new requirements were implemented. The new currency was, as is still the case, backed by bonds that were sold to introduce a certain amount of national bank notes into circulation. Together with government backed notes, they were to let the Union win the war.

A slight revision to the national currency act of 1863 was designed in the same year, but was not passed by Congress until mid 1864. Named the national bank act of 1863, it was a revision by Hugh McCullogh, the first comptroller of the currency, a position which was born out of the currency act. The most major revision was the increase on state banknotes from two to ten percent. It basically ended the period and history of obsolete currency, although some notes remained to circulate in desolate areas. A few years after the Civil War, obsolete currency notes did not circulate any more and were completely passed into history. The federal system, which had funded the Civil War, was now full in place, although there were still many different forms of currency in circulation. This was a situation which would not change until well into the 20th century.

Overall, this cent struck in this historic year of banking laws is common in all circulated and uncirculated grades up to the gem level, but gets very scarce in higher grades. Proofs, especially made for collectors with approximately 460 produced, are less often available than the 1862 issue, but can be located with some adequate searching. After the Civil War, these pieces started to circulate for the very first time. It was in this period that most circulated pieces acquired certain degrees of wear, and/or other problems.