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US Army Pin or Patch The Discharge Pin was a diamond shaped pin with an eagle inside a circle, just as you described. The patch was yellow embroidered on tan or brown. The pin was an all Brass pin. This was commonly referred to as the "ruptured duck" pin because the eagle in the insignia looks more like a duck. These pins or patches were awarded to soldiers who were discharged and it allowed them to wear the pin on their uniform and continue to wear their uniform until they were able to get home. This allowed them some relief from certain duty and orders. Link (scoll down to see Discharge Pin):

http://custermen.com/Reference/Uniforms/Badges.htm#Medals&Insignia

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