Coin shortage? What coin shortage?
PhillyJoe
Posts: 2,700 ✭✭✭✭
"We gather here today for a very rare and historic occasion in our Nation's history. When I sign this bill we will have made the first fundamental change in our coinage in 173 years. The coinage Act of 1965 supercedes the Act of 1792. Today, except for the half dollar, we are establishing a new coinage to take its place beside the old. Now, all of you know these changes are necessary for a simple reason - silver is a scarce material. Some have asked whether silver coins will disappear. The answer is definitely - No. Our present silver coins won't disappear and they won't even become rarities. There are more than 12 billion silver dimes, quarters, and half dollars that are now outstanding. We will make another billion before we halt production. If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content.
I want to assure you that in making this change from the 18th century we have no idea of returning to it.
We are going to keep our eyes on the stars and our feet on the ground."
Excerpts from Remarks of the President at the Signing Ceremony of the Coinage Act of 1965, in the White House, July 23, 1965.
I want to assure you that in making this change from the 18th century we have no idea of returning to it.
We are going to keep our eyes on the stars and our feet on the ground."
Excerpts from Remarks of the President at the Signing Ceremony of the Coinage Act of 1965, in the White House, July 23, 1965.
The Philadelphia Mint: making coins since 1792. We make money by making money. Now in our 225th year thanks to no competition. 
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<< <i>Treasury has a lot of silver on hand, and it can be, and will be used to keep the price of silver in line with its value in our present silver coin. >>
They sort of blew that one.
Russ, NCNE
Joe
Was a great movie..."Who's Minding the Mint"
Silver had reached a point where it was more valuable than the coins face value. Coins were being hoarded, the treasury had a huge stockpile of silver from the Pittman days and also had a huge supply of Morgans and Peace. They tried to dump them on the market to bring the silver price down. The problem was not the price of silver but the rise in inflation, so they soon realized they were just selling silver below market and stopped. All that was left were some bags of CC $$ (later sold as the GSA). I remember for the next couple of years we were going through rolls and pulling out the silver coins. Silver certificates were worth a premium too. Then came the big silver meltdown when everything from coins to candlesticks were being melted in backroom factories. A huge amount of BU and circulated coins ended up there.
Another side.... they blamed a lot of it on collectors and that began the "kill the collector" mentality at the mint. They stopped proof sets and stopped putting mint marks on coins for a while. The coin "biz" was 90% moderns so when this happened the coin market tanked big time for a few years.
If you want to read more I think Bowers had a book on this at one time, I know there are others.
the price of silver would have stayed low for a while longer.
If they really believed that the price of silver would stay under the trigger point to melt
coins they never would have switched.