Silver Coinage, Except the Half Dollar, Halted After 1964

Silver coinage, with the exception of the half dollar, halted after 1964. The Coinage Act of 1965, through which silver was to no longer be in the dime or quarter, was signed on July 23, 1965.

The 1965 Treasury Study and the Change in Fineness

According to the 1965 Treasury Staff Study of Silver and Coinage written by the Treasury Department, the change to 0.500 fineness coinage would not occur until January 1, 1966. The question was raised whether there was any movement to mint coins of lower silver content as had been done in 1853.

The 1964 Run on Treasury-Held Silver Dollars

The Treasury had been selling bags of old silver dollars at face value. There was a run on Treasury-held silver dollars in 1964. The only monetary effect could occur in the form of a shortage of silver dollars in the Rocky Mountain states, where they are commonly used by the citizens.

Preference for Silver Dollars in Western States

Specie payment was still favored in many Western states that still retained their "Free Silver" stance dating from the late 19th century. Bank notes were not accepted as well as a silver dollar. Colorado, Montana, and Nevada casinos preferred silver dollars for use in gambling, especially the so-called "one armed bandit" slot machines.

Casino Responses and the Franklin Mint

Harrah's Reno reacted by defacing existing silver dollars to discourage collectors and souvenir hunters from hoarding the coins. The privately owned Franklin Mint, founded in 1964 in Wawa, Pa., was responsible for supplying many of the casinos with brass, bronze, and nickel composition slot machine tokens through the 1970s. The Franklin Mint additionally produced and marketed sterling silver sets commemorating the casinos.