The Eisenhower Dollar: The “Silver Dollar” With No Silver
The Eisenhower Dollar is the last large sized U.S. Dollar coin to be released into circulation as currency and whose circulation strikes contain no silver. It is worthwhile to note that there were a small number of Eisenhower dollars minted that were 40% silver that were not circulated as collector or proof issues and it was the last full sized U.S. dollar coin to have any silver. The coin had three different iterations that can be grouped into the original (1971–1974), the bicentennial (1975–1976), and the final production years (1977–1978) which looked the same as the original.
The Eisenhower dollar mintage came in the aftermath of the silver price run up, the coin shortage, and the removal of silver content from all silver coins but the half dollar through the Coinage Act of 1965. The silver prices remained elevated which was ammo for the argument that they should be removed from the half-dollar. Mary Brooks, Nixon’s Mint Director, supported the continuous use of a silver dollar with silver in it but was opposed by many including the then powerful House Banking Committee Chairman, Wright Patman. Dwight D. Eisenhower, the infamous general and President, died on March 28th, 1969 and a bipartisan support formed around producing a half-dollar to honor him at least as long as the half-dollar had honored President Kennedy.
The House and the Senate passed separate legislation, with the Senate, led by Colorado Senator Peter Dominick, calling for the coin to be minted in 40% silver and the House demanding no silver content whatsoever. In March of 1970, both chambers came to an agreement to mint $150 million worth of the coin in 40% silver for the collectors edition, with the remaining coins needed for circulation to contain no silver. The 47.7 million ounces of silver needed for the collectors edition would come from the government’s silver stockpile. The compromise passed in the Senate, but the bill was held up by Representative Patman of Texas who was determined to have all silver removed from circulation. Nixon had hoped to have the bill pass without his signature but with Rep. Patman opposed to the bill, Nixon was forced to sign the bill on the final date possible of December 31, 1970.
The Susan B. Anthony replaced the Eisenhower dollar after it was last produced in small volumes in 1978. The Susan B. Anthony smaller dollar coin contains no silver in its composition.
Analysis: With a consolation prize of $150 million in 40% collector edition silver, the production of the Eisenhower dollar in the circulation strike edition with zero silver was the final nail in the coffin for physical silver in U.S. coinage. The argument at the time was the shortage of silver due to the industrial demand. While this may have been true at the time, the silver price fell dramatically over the subsequent decades excluding the run up during the Hunt Brothers incident so if there was a desire to reimplement silver coins by the government the possibility existed.
The Eisenhower dollars that contain 40% silver never entered circulation as they are more favored money under Gresham’s Law than non-silver coins and many of the Eisenhower dollars have become collector’s items themselves, drying up in actual circulation and usage in transactions. The fact that silver content coins have disappeared from circulation is indicative that the People prefer the value of a silver coin over that of a fiat one. The decision to make the coins appear the color of silver was definitely an intentional one. WHY? You know the answer.
