1856-S $3 (1856-S Three Dollar Gold) Small S, NGC XF45 CAC. Most circulated coins of this date and mint suffer from marks and abrasions that resulted from extensive use. The present coin shows virtually no wear above and to the left of Libertys eye and just a touch on the top of the curled feathers of the headdress. The surfaces are clean for the grade and free of distracting marks and abrasions. The grade of XF45 is confirmed by CAC, which indicates that the coin meets stringent standards for quality within the grade and is a premium quality piece. Traces of original mint luster remain in protected areas of both sides.

James Longacre designed the Three Dollar Gold coin using the Indian Princess for his main device. He had to create a motif that would be distinctly different from the quarter and half eagle coronet designs. The design, similar to his Gold Dollar Large Head, shows a head of Liberty facing left in profile wearing a stylized headdress. Inscribed on the headband is LIBERTY. She is surrounded by the words UNITED STATES OF AMERICA. In using the Indian Princess design, Longacre felt that he was creating something that was uniquely American rather than an adoption from the classics. The reverse shows an open wreath of corn, cotton, wheat, and tobacco tied at the bottom with a bow. The denomination 3 appears at the top center of the wreath, with DOLLARS and the date below within the wreath. Longacre liked the wreath design so much that he adopted it for use on the small cent of 1856.

In 1851 a law was passed that authorized a three cent piece and also made the postage rate three cents. Two years later a new law was passed authorizing a light weight silver three cent coin and a Three Dollar Gold coin. Evidently lawmakers believed that the gold coin would be useful to buy rolls of three cent coins and sheets of stamps. Its closeness to the quarter eagle, which was widely used, made the denomination somewhat illogical, and the public proved indifferent to them.

The small S variety of the 1856-S Three Dollars gold coin is rare. In its population report, NGC shows 2 in XF45 with 9 better. CAC does not give population numbers by varieties for this date; however, as of October 2011, they have confirmed 1, the present coin, in XF45 with 7 better.