Back in the 18th century, the U.S. monetary system was the bimetallic standard based on Gold/Silver. These silver certificates were backed by stockpiles of silver bullion in the Treasury Department which means silver certificate holder can redeem the note for a certain amount of physical silver. But this practice was halted on June 24, 1968, by the passage Act of June 4, 1963.
Spans the length of U.S. history, The first silver certificates were issued from 1878 until 1964. The type of silver certificates varied in design, and color making them one of the most fascinating and favorite designs ever among the numismatic community and also all types of U.S Paper Money.
The Silver Certificate Large-Size Paper Money
After Congress passed Act February 28, 1878, the bimetallic standard that had been discontinued since 1873 was restored. The US treasury was required to buy a certain amount of silver every month and minted it as the silver dollar and put it into circulation parallel with the gold coin. There were five issues were released under the Act of February 28th ,1878 and August 04th, 1886. All of the silver certificates were printed as large-size paper money during this period.
- Series 1878 and 1880: From the first issue, there were six denominations were released $10, $20, $50, $100, $500 and $1000.
- Series 1886, 1891, and 1908: This was the second issue consisted of the denominations $10 all the way up to $1000
- Series 1896: This was the third issue and the most famous issue. Collectors reference as the “Educational Series” which is highly appreciated in terms of design and is highly desirable consisting of the triple denominations $1, $2, and $5.
- Series 1899: The fourth issue consisted of $1, $2 and $5 notes. The three denominations in this series combines American history with exquisite artwork to create a truly American banknote from the early 1900s. All of them were listed on the 100 Greatest American Currency Notes.
- Series 1923: The fifth issue consist of only $1 and $5. This is the last issue of the Silver Certificate as Large-Size Paper Money. All of the silver certificates dollar bill issued after this series was resized to the same as the size applied on the modern notes nowadays.
The Small-Size Silver Certificate
Another committee that looked at the size change's designs and suggestions received approval from Treasury Secretary Andrew W. Mellon in May 1927. 6.14 by 2.61 inches would be the new dimensions which were 30% smaller than the circulating paper money in size. The changing from large to small size would be reduce the costs of production, paper and ink also speed up the printing production.
After the paper money resizing and redesign recommendation were approved, the silver certificate small size consisted of only low denominations which were $1, $5, and $10. The series of 1928 $1 one dollar bill was the very first silver certificate small size released.
The Final Days of the Silver Certificate Era
At the beginning 1960s, the increasing demand for silver for industrial purposes had led to an increase in the market price of silver above the United States government's fixed price. After the Act of June 04th 1964, the form of silver certificate was abolished. All of the silver certificates from circulation can be redeemable for the silver dollar with the deadline being four years. This practice was halted on June 24, 1968.
The United States finally abandoned the gold and silver standards when President Richard Nixon declared on August 15, 1971, that currency would no longer be redeemable for gold or any other precious metal and the U.S. monetary system officially rip off bimetallic standard based on Gold/Silver.
The Fate of the Silver Certificate Dollar Bill: What's Happening Today?
Since all of the silver certificates were halted from being redeemable for silver bullion. It still remains its legal status as legal tender of the United State and can be circulated as the face value of the note bearing.
However, based on the Silver Certificate's series of the year and condition, these silver certificates may be more valuable to collectors and dealers due to its numismatic appeal than its face value.
Why did Silver Certificates be one of the most desirable types of U.S Currency among collectors?
Silver Certificates are known for their intricate and detailed design. The designs of the certificates were created to not only serve as a form of currency, but also as a work of art that celebrated American history and spirit.
Each series of Silver Certificates had its own unique design that was created to reflect the values and ideals of the time in which it was issued. For example, early series of Silver Certificates featured portraits of prominent Americans. Later series of certificates incorporated more abstract designs, such as intricate patterns and geometric shapes. The Silver Certificate series of 1899 is considered a must-have items for many collectors.
- $1 Silver Certificate "Black Eagle"
- $2 Silver Certificate "Mini-Porthole"
- The iconic $5 Silver Certificate "Indian Chief Note"
The design of Silver Certificates was created to be both aesthetically pleasing and functional. The certificates were printed on high-quality paper and featured intricate details, such as intricate engraving, embossing, and the use of color. These design elements not only added to the beauty of the certificates, but also made them difficult to counterfeit, ensuring their security as a form of currency. The "Educational Series" was a typical example.
With their combination of beauty and historical significance, Silver Certificates are sure to make a stunning addition to any collection for generations to come.
