Silver certificate (United States): Difference between revisions

{{Use American English|date=June 2022}}

[[File:US-$1-SC-1935-A-Fr.2300.jpg|thumb|right|alt=$1 1935 silver certificate with Hawaii overprint|The {{US$|long=no|1}} silver certificate from the [[Hawaii overprint note|Hawaii overprint series]].]]

 

'''Silver certificates''' are a type of [[representative money]] issued between 1878 and 1964 in the United States as part of its circulation of [[paper currency]].<ref name="BEP website">{{Cite web| title = Silver Certificates| publisher = Bureau of Engraving and Printing/Treasury Website| url = http://www.moneyfactory.gov/silvercertificates.html| access-date = 12 February 2014| url-status = dead| archive-url = https://web.archive.org/web/20140403223347/http://moneyfactory.gov/silvercertificates.html| archive-date = 3 April 2014}}</ref> They were produced in response to [[free silver|silver agitation]] by citizens who were angered by the [[Fourth Coinage Act]], which had effectively placed the United States on a [[gold standard]].<ref name="Leavens24">Leavens, p. 24.</ref> The certificates were initially redeemable for their face value of [[silver]] [[United States dollar coin|dollar coins]] and later (for one year from June 24, 1967, to June 24, 1968) in raw silver bullion.<ref name="BEP website"/> Since 1968 they have been redeemable only in [[Federal Reserve Notes]] and are thus obsolete, but still valid [[legal tender]] at their face value and thus are still an accepted form of currency.<ref name="BEP website"/>

 

===Large-size silver certificates===

The first silver certificates (Series 1878) were issued in denominations of {{US$|long=no|10}} through {{US$|long=no|1000}}.{{#tag:ref|"The act of February 28, 1878, also authorized the holder of these silver dollars to deposit: the same with the Treasurer, or any Assistant Treasurer, of the United States, in sums not less than ten dollars, and receive therefor certificates of not less than ten dollars each, corresponding with the denominations of the United States notes."<ref>Knox, p. 152.</ref>|group="nb"}} Reception by financial institutions was cautious.<ref>Taussig, 1892, p. 15.</ref> While more convenient and less bulky than dollar coins, the silver certificate was not accepted for all transactions.<ref>Taussig, 1892, p. 10.</ref> The Bland–Allison Act established that they were "receivable for customs, taxes, and all public dues,"<ref name="Lee, p. 396"/> and could be included in bank reserves,<ref name="Knox153">Knox, p. 153.</ref> but silver certificates were not explicitly considered legal tender for private interactions (i.e., between individuals).<ref name="Knox153"/> Congress used the National Banking Act of July 12, 1882, to clarify the legal tender status of silver certificates<ref>Taussig, 1892, p. 16.</ref> by clearly authorizing them to be included in the lawful reserves of national banks.<ref name="Champ&Thomson12">Champ & Thomson, p. 12.</ref> A general appropriations act of August 4, 1886, authorized the issue of {{US$|long=no|1}}, {{US$|long=no|2}}, and {{US$|long=no|5}} silver certificates.<ref name="Knox, p. 155"/><ref>McVey, p. 438.</ref> The introduction of low-denomination currency (as denominations of U.S. Notes under {{US$|long=no|5}} were put on hold) greatly increased circulation.<ref>Champ & Thomson, p. 14.</ref> Over the 12-year lifespan of the Bland–Allison Act, the United States government would receive a [[seigniorage]] amounting to roughly {{US$|long=no|68}}&nbsp;million (between {{US$|long=no|3}} and {{US$|long=no|9}}&nbsp;million per year),<ref name="Leavens39">Leavens, p. 39.</ref> while absorbing over 60% of U.S. silver production.<ref name="Leavens39"/>

 

 

In keeping with the verbiage on large-size silver certificates, all the small-size Series 1928 certificates carried the obligation "This certifies that there has (or have) been deposited in the Treasury of the United States of America X silver dollar(s) payable to the bearer on demand" or "X dollars in silver coin payable to the bearer on demand". This required that the Treasury maintain stocks of silver dollars to back and redeem the silver certificates in circulation. Beginning with the Series 1934 silver certificates the wording was changed to "This certifies that there is on deposit in the Treasury of the United States of America X dollars in silver payable to the bearer on demand." This freed the Treasury from storing bags of silver dollars in its vaults, and allowed it to redeem silver certificates with bullion or silver granules, rather than silver dollars. Years after the government stopped the redemption of silver certificates for silver, large quantities of silver dollars intended specifically to satisfy the earlier obligation for redemption in silver dollars were found in Treasury vaults.

 

As was usual with currency during this period, the year date on the bill did not reflect when it was printed, but rather a major design change. Under the Silver Purchase Act of 1934, the authority to issue silver certificates was given to the U.S. Secretary of Treasury.<ref>https://www.loc.gov/law/help/statutes-at-large/73rd-congress/session-2/c73s2ch674.pdf {{Bare URL PDF|date=March 2022}}</ref> Additional changes, particularly when either of the two signatures was altered, led to a letter being added below the date. One notable exception was the Series 1935G {{US$|long=no|1}} silver certificate, which included notes both with and without the motto "In God We Trust" on the reverse. 1935 dated one dollar certificates lasted through the letter "H", after which new printing processes began the 1957 series.<ref>{{Cite web|url=http://www.oldcurrencyvalues.com/1935_one_silver_dollar.html|archive-url=https://web.archive.org/web/20140507035607/http://www.oldcurrencyvalues.com/1935_one_silver_dollar.html|url-status=dead|title=Series of 1935 {{US$|long=no|1}} Silver Certificate – Values and Pricing|archive-date=May 7, 2014}}</ref> In some cases printing plates were used until they wore out, even though newer ones were also producing notes, so the sequencing of signatures may not always be chronological. Thus some of the 1935 dated one dollar certificates were issued as late as 1963.<ref>{{Cite web|url=http://www.uspapermoney.info/general/deliv_s.html|title=USPaperMoney.Info: Delivery Dates by Series|website=www.uspapermoney.info}}</ref>

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! scope="row"|$1

|Fr.226

|[[File:US-$1-SC-1899-Fr-226.jpg|200px|alt=$1 Silver Certificate, Series 1899, Fr.226, depicting Abraham Lincoln and Ulysses Grant]]

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==Further reading==