When Did They Stop Making Silver Dollars?
Uncover the definitive timeline of U.S. silver dollar production, revealing when they ceased circulation and evolved into collector's items.
The United States has a rich history of producing silver dollars, which served as a primary form of large-denomination coinage for many years. These coins played a significant role in the nation’s monetary system, reflecting economic shifts and legislative changes throughout their production. Understanding their history involves examining the periods they were minted and the reasons behind their eventual cessation as circulating currency.
Early Silver Dollar Production
The first U.S. silver dollars began production with the 1794 Flowing Hair Dollar. This initial design was soon followed by the Draped Bust dollar, minted from 1795 to 1804. Production of silver dollars then paused until the Gobrecht dollars in 1836, followed by the introduction of the Seated Liberty dollar in 1840. These early silver dollars faced challenges related to the bimetallic monetary standard, where both gold and silver were used as currency.
A significant turning point occurred with the Coinage Act of 1873, often referred to as the “Crime of ’73.” This act effectively demonetized silver, removing the standard silver dollar from the list of coins the U.S. Mint could legally issue and shifting the country towards a gold standard. While silver coins still circulated, new silver dollar production for general use ceased, leading to a temporary halt in their minting.
The Last Circulating Silver Dollars
Silver dollar production resumed following the Coinage Act of 1873 with the introduction of the Trade Dollar in 1873, though this coin was primarily intended for foreign trade. The more widely recognized Morgan Dollar began minting in 1878, authorized by the Bland-Allison Act. Morgan Dollars were produced from 1878 to 1904, and then again for one final year in 1921.
The Peace Dollar, designed to commemorate the end of World War I, was first struck in late 1921. It became the last U.S. dollar coin intended for general circulation to be made of silver, with production continuing intermittently from 1921 to 1928 and then again from 1934 to 1935. The final year of regular circulating silver dollar production was 1935. A brief attempt to produce 1964-dated Peace Dollars occurred in 1965 at the Denver Mint, with over 316,000 coins struck, but these were never officially released into circulation and were reportedly melted down due to rising silver prices. The increasing market price of silver relative to the coins’ face value made it economically unfeasible to continue minting them for circulation, leading to their ultimate cessation.
Commemorative Silver Dollars
After the last Peace Dollars were minted for circulation in 1935, the U.S. Mint no longer produced silver dollars for everyday transactions. However, the production of silver dollars for collectors and commemorative purposes resumed in the 1980s. These modern commemorative silver dollars are not intended for general circulation, distinguishing them from their earlier counterparts.
The U.S. Mint began issuing these non-circulating silver dollars in 1983, often to honor significant American people, places, or events. Many of these coins contain silver, similar to the earlier circulating dollars. These contemporary silver dollars continue to be produced by the U.S. Mint, serving as collectible items rather than as currency for daily use.