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This is an example of artistic license on the part of the designer. It's simply a stylized usage, and is found on some other denominations such as the Walking Liberty half-dollars of 1916-47. Other U.S. coins carry stylized wording as well. The best example is the use of the Roman "v" to represent the vowel "u" in the motto In God We Trust. Peace dollars (1921-35) and Standing Liberty quarters (1916-30) both use that style. Quasi-Roman usage was quite popular during the early part of the last century. It can also be seen in inscriptions on buildings, medals, and jewelry from that period.

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Q: Why is the o in oF not capitalized on the tails side of the penny?
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