Understanding the Pittman Act of 1918: Its Impact on Silver Coins and Coin Collecting

The Pittman Act of 1918 was a law that greatly impacted the silver industry and the world of coin collecting. Named after Senator Key Pittman, it allowed for the melting of millions of silver dollars to support the war effort and help stabilize financial markets during World War I. In this article, we’ll break down the history and effects of the Pittman Act and its influence on silver coins.

What Was the Pittman Act of 1918?

The Pittman Act, passed in 1918, allowed the U.S. government to melt down up to 350 million silver dollars. The melted silver was either sold as bullion or used to make smaller silver coins. The act also required the U.S. Mint to buy new silver from domestic mines to replace the melted coins. This helped the American silver industry, especially in Nevada, known as “The Silver State.”

Why Was the Pittman Act Passed?

The main reason for the Pittman Act was to support the war effort during World War I. The war was expensive, and countries needed a lot of money to pay for weapons, supplies, and soldiers. While gold was running out, the U.S. had a large stock of silver dollars that weren’t being used much. Melting these silver coins provided a solution to meet the financial needs of the war.

How Did the Pittman Act Help Great Britain?

In 1918, Germany tried to weaken Great Britain by spreading rumors that the British couldn’t back up their silver currency. This caused a financial panic in India, which was then part of the British Empire. To calm things down, Britain needed to buy a lot of silver quickly, so the U.S. helped by selling them the melted silver from its silver dollars. This move helped stabilize the British economy and avoided a banking crisis.

The Impact on Silver Mining and Coin Collecting

The Pittman Act wasn’t just about helping Britain; it also helped American silver mining companies. For every silver dollar that was melted, a new one had to be made from freshly mined silver. This gave a big boost to the mining industry in Nevada and other silver-rich states.

However, for coin collectors, the Pittman Act was a disaster. Almost half of all silver dollars minted by the U.S. up to that point were melted down. Of the 270 million silver dollars produced, 259 million were destroyed. This has left many wondering how many rare Morgan silver dollars were lost forever.

The Return of the Morgan and Peace Dollars

To replace the silver dollars melted down under the Pittman Act, the U.S. Mint began producing more coins. In 1921, Morgan dollars were minted in large quantities, but they were soon replaced by the Peace dollar, which celebrated the end of World War I. By 1928, enough silver dollars had been minted to replace what had been lost. The Peace dollar made a brief return in 1934, but its full run only included 24 coins, making it a favorite among collectors.

Key Points of the Pittman Act

Key Points	Details
Year Passed	1918
Number of Silver Dollars Melted	259 million
Main Purpose	Support war effort and stabilize financial markets
Beneficiaries	British economy and U.S. silver mining companies

Table 2: U.S. Silver Dollar Coins

Coin Type	Years Minted	Historical Significance
Morgan Dollar	1878-1904, 1921	Popular among collectors; many melted down in 1918
Peace Dollar	1921-1928, 1934	Commemorates end of World War I

Conclusion

The Pittman Act of 1918 played a significant role in both American and British history during World War I. By melting millions of silver dollars, the U.S. government helped stabilize global markets and supported its own silver industry. For coin collectors, the act remains a source of mystery and loss, as many rare coins were destroyed. However, it also paved the way for the creation of the iconic Peace dollar, a symbol of hope after the war.

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