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|Tex I suppose that might be an explination but I would think that this coin has been handled a lot over the last 150 years and even had it been in mint condition when and if Pender wore it the coin might show a good bit of wear now. I think your right about the reverse side having been ground down so it could have the scrip work done.
Texas Defender wrote:
The coin appears to be a silver dollar minted in 1860 in New Orleans. The area around the rim on the reverse seems to be ground down in order to have a flat surface to make an inscription.
What is strange to me is the amount of "Honest wear" that seems to be on the obverse. I cannot see how it would have been possible to get that amount of wear from the time the coin was minted until William Pender died in July of 1863. Thus, I cannot believe that it was used as a : "Dogtag" by Pender himself.
My theory is that the coin was inscribed many years after 1863 as a form of memorial for Pender. If I am correct, then it is probable that it was done by one of Pender's soldiers as a tribute to him.