Coinage Act of 1965
Encyclopedia
The Coinage Act of 1965, , eliminated silver from the circulating dime
s and quarter dollar
s of the United States, and diminished the silver content of the half dollar
from 90% to 40%. This act was in response to coin shortages caused by the rising price of silver.
In addition to the above provisions, for which it is best known, the act:
Dime (United States coin)
The dime is a coin 10 cents, one tenth of a United States dollar, labeled formally as "one dime". The denomination was first authorized by the Coinage Act of 1792. The dime is the smallest in diameter and is the thinnest of all U.S...
s and quarter dollar
Quarter dollar
Quarter dollar may refer to ¼ unit of currencies that are named dollar. Normally 1 dollar is divided into 100 cents, making quarter dollar equal to 25 cents. But most of the time, coins or banknotes of that amount are denominated in one of the two expressions....
s of the United States, and diminished the silver content of the half dollar
Half dollar (United States coin)
Half dollar coins have been produced nearly every year since the inception of the United States Mint in 1794. Sometimes referred to as the fifty-cent piece, the only U.S. coin that has been minted more consistently is the cent.-Circulation:...
from 90% to 40%. This act was in response to coin shortages caused by the rising price of silver.
In addition to the above provisions, for which it is best known, the act:
- Allowed the Secretary of the TreasuryUnited States Secretary of the TreasuryThe Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
to continue to strike 90% silver coins for up to five years, until the Secretary determined there was an adequate supply of clad coins. This authority was exercised, through 1966, though the coins were dated 1964.
- Forbade the minting of silver dollars for five years.
- Made all coins and currency of the United States (including certain bank issues) a legal tenderLegal tenderLegal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
. This has been taken to reverse the demonitization of the Trade DollarTrade Dollar (United States coin)The trade dollar was a United States dollar coin minted to compete with other large silver coins that were already popular in East Asia. The idea first came about in the 1860s, when the price of silver began to decline due to increased mining efforts in the western United States...
.
- Gave the Secretary broad discretion to enter into contracts to assure an adequate supply of clad coins, without regard to public procurement laws.
- Established a Joint Commission to make recommendations regarding coin and currency.
See also
- Coinage Act of 1792
- Coinage Act of 1834Coinage Act of 1834The Coinage Act of 1834 was passed by the United States Congress on June 27, 1834. It raised the silver-to-gold weight ratio from its 1792 level of 15:1 to 16:1 thus setting the mint price for silver at a level below its international market price...
- Coinage Act of 1849
- Coinage Act of 1857Coinage Act of 1857The Coinage Act of 1857 was an act of the United States Congress which forbade the use of foreign coins as legal tender, repealing all acts "authorizing the currency of foreign gold or silver coins". Specific coins would be exchanged at the Treasury and recoined...
- Coinage Act of 1864
- Coinage Act of 1873