 The Bland – Allison Act , passed by Congress on February 28 , 1878 , required the Treasury to purchase a minimum of $ 2 million in domestically mined silver per month and coin it into silver dollars . The Mint used a new design by engraver George T. Morgan , and struck what became known as the Morgan dollar . Many of the pieces quickly vanished into bank vaults for use as backing for paper currency redeemable in silver coin , known as silver certificates . In 1890 , the purchases required under the Bland – Allison Act were greatly increased under the terms of the Sherman Silver Purchase Act . Although the Sherman Act was repealed in 1893 , it was not until 1904 that the government struck the last of the purchased silver into dollars . Once it did , production of the coin ceased . 
