 The first dollar coins , known as Flowing Hair dollars , were issued by the Mint beginning in 1794 . By 1800 , a majority of depositors requested their bullion be struck as silver dollars , which were then utilizing the Draped Bust design . This contributed to a shortage of small change in circulation , and as a result , the public became increasingly critical of the Mint . Mint Director Elias Boudinot began encouraging depositors to accept fractional coins , and the production of dollars began to decrease in relation to the smaller coins . Dollar coin production ceased in March 1804 , although those pieces bore the date of 1803 . In his 1805 report , Mint Director Robert Patterson stated that " [ t ] he striking of small coins is a measure which has been adopted to accommodate the banks and other depositors , and at their particular request , both with a view of furnishing a supply of small change , and to prevent the exportation of the specie of the United States to foreign countries . " Though none had been struck for over two years , Secretary of State James Madison officially suspended silver dollar coinage on May 1 , 1806 , addressing a letter to Patterson : 
