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The "upper serif" refers to the "4" in 1864.

On the right hand side of the horizontal line of the 4, there is a small upwards pointing serif, like a small tail, or the final flourish of a pen as you complete the figure.

The other type of 1864 Penny has no "upper serif", but a "T" shaped end on the right hand side of the horizontal line of the 4.

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