Peace Dollar - Striking of 1964-D Dollars

Striking of 1964-D Dollars

On August 3, 1964, Congress passed legislation providing for the striking of 45,000,000 silver dollars. Coins, including the silver dollar, had become scarce due to hoarding as the price of silver rose past the point at which a silver dollar was worth more as bullion than as currency. The new pieces were intended to be used at Nevada casinos and elsewhere in the West where "hard money" was popular. Many in the numismatic press complained that the issue would only satisfy a small special interest, and would do nothing to alleviate the general coin shortage. Much of the pressure for the coins to be struck was being applied by the Senate Majority Leader, Mike Mansfield (Democrat–Montana), who represented a state that heavily used silver dollars. Preparations for the striking proceeded at a reluctant Mint Bureau. Some working dies had survived Sinnock's 1937 destruction order, but were found to be in poor condition, and Mint Assistant Engraver (later Chief Engraver) Frank Gasparro was authorized to produce new ones. Mint officials had also considered using Morgan's design; this idea was dropped and Gasparro replicated the Peace dollar dies. The reverse dies all bore Denver mintmarks; as the coins were slated for circulation in the West, it was deemed logical to strike them nearby.

In early 1965, Treasury Secretary C. Douglas Dillon wrote to President Lyndon Johnson, opposing the coin issue and pointing out that the pieces would be unlikely to circulate in Montana or anywhere else; they would simply be hoarded. Nevertheless, Dillon concluded that as Senator Mansfield insisted, the coins would have to be struck. Dillon resigned on April 1; his successor, Henry H. Fowler, was immediately questioned by Mansfield about the dollars, and he assured the senator that things would be worked out to his satisfaction. Mint Director Eva Adams hoped to avoid striking the silver dollars, but wanted to keep the $600,000 appropriated for that expense. Senator Mansfield refused to consider any cancellation or delay and on May 12, 1965, the Denver Mint began trial strikes of the 1964-D Peace dollar—the Mint had obtained congressional authorization to continue striking 1964-dated coins into 1965.

The new pieces were publicly announced on May 15, 1965, and coin dealers immediately offered $7.50 each for them, ensuring that they would not circulate. The public announcement prompted a storm of objections. Both the public and many congressmen saw the issue as a poor use of Mint resources at a time of severe coin shortages, which would only benefit coin dealers. On May 24, one day before a hastily called congressional hearing, Adams announced that the pieces were deemed trial strikes, never intended for circulation. The Mint later stated that 316,076 pieces had been struck; all were reported melted amid heavy security. To ensure that there would be no repetition, Congress inserted a provision in the Coinage Act of 1965 forbidding the coinage of silver dollars for five years. No 1964-D Peace dollars are known to exist in either public or private hands. However, they have been privately restruck using unofficial dies and genuine, earlier-date Peace dollars.

Some Peace dollars using a base metal composition were struck as experimental pieces in 1970 in anticipation of the approval of the Eisenhower dollar; they are all presumed destroyed. This new dollar coin was approved by an act signed by President Richard Nixon on December 31, 1970, with the obverse to depict President Dwight D. Eisenhower, who had died the previous year. Circulating Eisenhower dollars contained no precious metal, though some for collectors were struck in 40% silver.