Controversy Of The 1960-S-Coin Compostition

Coin World article:
http://www.coinworld.com/news/030606/BW_0306.asp

Controversy of the 1960s
Composition of the dime, quarter dollar
and half dollar once a hotly debated issue
posted 2/21/06
By Hayden Rose
Coin World Staff
 

The composition of our dime, quarter dollar and half dollar are taken for granted today but at one time the composition of these coins was a hotly contested issue.

In the years between 1960 and 1964, the rising coinage output at the Mint had increased that agency's silver usage from 42 million ounces in 1960 to 144 million ounces in 1964, and it seemed that if nothing were done the Mint's annual consumption of the precious metal would hit 300 million ounces in the near future.

Estimates indicated the Treasury Department's 1-billion-ounce stockpile of silver could last the Mint three years, but the Mint was not the only agency that tapped the reserves. Sixty million ounces were sold every year to keep the price of silver stable, and other agencies, such as the Navy, which needed silver for nuclear submarine batteries, drew silver from the stockpile.

At the same time the industrial use of silver was climbing, pushing silver prices to new highs. The Western mine owners, who produced most of the domestic silver, about $50 million annually, cheered as prices rose and demand outstripped supply. But, officials at the Mint and the Treasury became anxious as the price of silver approached $1.38 an ounce, the point at which it would become profitable to melt coins for their silver content.
Click on image to enlarge


WHILE CONGRESS DEBATED removing most or all silver from circulating coinage, the Mint was striking 1964 Roosevelt dimes. A new composition, copper-nickel clad, was introduced to the 10-cent denomination in 1965.

Seeing an impending crisis, and the potential for a severe coinage shortage, Congress quickly saw the need for at least a reduced silver content in the coinage if not its complete removal. However, as so often happens with Congress, a squabble over the issue let the 90 percent composition stand for a little while longer...
remainder at website