A picture of a Silver Certificate (top image is the obverse of the certificate, bottom image is the reverse of the certificate).

Silver Certificates were used for a time in the United States as a form of paper currency. They were produced in response to silver agitation by citizens angered by the "Crime of 1873", which placed the United States on the gold standard. The certificate was matched to the same amount of value in silver coinage. For example, one fifty dollar Silver Certificate = fifty silver dollars. Download high resolution version (731x642, 151 KB)Picture of a silver certificate. ... Download high resolution version (731x642, 151 KB)Picture of a silver certificate. ... In logic (and usually without being paired with reverse), obverse has a meaning close to contrapositive. ... Reverse may refer to: Obverse and reverse side of a coin changing the direction: of movement: forward - reverse, see gearbox of a design: see reverse engineering This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... A £20 Ulster Bank banknote. ... General Name, Symbol, Number silver, Ag, 47 Chemical series transition metals Group, Period, Block 11, 5, d Appearance lustrous white metal Atomic mass 107. ... Silver coins are possibly the oldest form of money. ... Dollar coins have been minted in the United States in both gold and silver versions. ...

Distinguishing Features

There are a few features that distinguish a Silver Certificate. The seal and serial number on many of the first Silver Certificates issued was red or brown. It was not until Series 1899 for the $1, $2, and $5 denominations that the seal and number colors were officially, and permanently, changed to blue. (This occurred at different points for denominations above $5). During World War II the government issued 1935a Silver Certificates with a brown seal for Hawaii distribution and 1935a certificates with a yellow seal for North Africa distribution. The idea was that if these areas fell into enemy hands during the war, the money would be able to be easily identified and cancelled so as to prevent large monetary losses. This article is becoming very long. ...

Obligation

The obligation of a note states how much of a specific commodity the government of a country will "pay to the bearer." On most large-size Silver Certificates, the obligation reads: "This certifies that there have/has been deposited in the Treasury of the United States of America (number) silver dollar(s) payable to the bearer on demand." On small-sized Silver Certificates beginning with Series 1934, in order to denote current location of deposit, it was changed to read: "This certifies that there is on deposit in the Treasury of the United States of America (number) dollar(s) in silver payable to the bearer on demand." An obligation can be legal or moral. ...

History

The Beginning of an Age

The "Crime of 1873" placed the United States on the gold standard, which replaced the bimetallic (silver and gold) standard that had been created by Alexander Hamilton. Many of the poorer citizens saw this as a "crime," and silver agitation began. The Bland-Allison Act, as it came to be known, was passed by Congress on February 28, 1878. It did not provide for the "free and unlimited coinage of silver" demanded by Western miners, but it did require the United States Treasury to purchase between $2 million and $4 million of silver bullion from mining companies in the West. The silver coins that were to be minted would be legal tender for all debts, like gold. These coins, however, were quite heavy, so the government applied their gold certificate strategy to the silver. Suppose that there were five silver dollars in the treasury. The government would print a $5 Silver Certificate against the dollars, providing a somewhat easier medium of exchange. The idea was kept, and Series 1878 was printed in denominations of $10 to $1000. The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. ... This article is on the monetary principle. ... Alexander Hamilton (January 11, 1755 or 1757 – July 12, 1804) was an American politician, leading statesman, financier, intellectual, military officer, and founder of the Federalist Party. ... The Bland-Allison Act of 1878 was a response to the Fourth Coinage Act, or the Crime of 73! demonetizing silver. ...

The First Small-size Silver Certificates

In 1928, the United States Treasury decided to reduce the size of its currency in order to speedup transactions, and also to cut costs. By this time, the Federal Reserve had taken over much of the currency market, and the prices of gold and silver had risen greatly. For Series 1928, only $1 Silver Certificates were produced. Fives and tens of this time were mainly Federal Reserve Notes, which were backed by and redeemable in gold. All this would change, however, with the beginning of the Great Depression in October 1929. The United States was plunged into an economic disaster of profound proportions. Many citizens blamed the fluctuating price of gold, which directly affected the U.S. dollar because it was pegged to the value of gold. The United States Department of the Treasury is a Cabinet department, a treasury, of the United States government established by an Act of U.S. Congress in 1789 to manage the revenue of the United States government. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... The Great Depression was a worldwide economic downturn which started in 1929 (although its effects were not fully felt until late in 1930) and lasting through most of the 1930s. ...

President-elect Franklin Roosevelt felt the same way. He persuaded Congress to recall all gold coins, gold bullion, and gold certificates, which circulated alongside Silver Certificates. This prompted Congress to quietly place the U.S. on the silver standard. On May 12, 1933, the Agricultural Adjustment Act was passed, which included a clause allowing for the pumping of silver into the market to replace the gold. A new Series 1933 $10 Silver Certificate was printed and released, but not many were released into circulation. Franklin Delano Roosevelt (January 30, 1882–April 12, 1945), often referred to as FDR, was the 32nd (1933–1945) President of the United States. ...

In 1934, a law was passed in Congress that changed the obligation on Silver Certificates so as to denote the current location of the silver. This law also allowed the government to exchange silver bullion for the certificates, not just silver dollars. The 1933, along with its sister, the 1933A, $10 silvers, as well as the 1928 $1 silvers were phased out and replaced with certificates of Series 1934. The small-size $5 Silver Certificate was introduced with this series, as well.

The End of the Silver Certificates

1957 $1 Silver Certificate

Silver Certificates circulated, mainly in the $1 denomination, widely throughout the United States in the years following 1934. When the '34s wore out, they were replaced with a new, more modern-looking Series 1953 (1935 for the $1 silvers; see below), with the same face changes as the Series 1950 Federal Reserve Notes had experienced. However, the Silver Certificates began to disappear from circulation during the 1940s and 1950s. The amount of Silver Certificates in circulation depended directly upon the amount of silver bullion in the Treasury vaults. As people redeemed the certificates for bullion or silver dollars, the notes were shredded, because the notes had lost their backing and could not be recirculated unless there were more silver being produced. The price of silver was also rising. In 1960, it was nearing $1.29, which meant that silver dollars were worth more than $1. This meant that people would receive their silver dollars, and melt them down for the bullion, thereby reducing the amount of silver in circulation, which was already falling. Image File history File links US_Silvercert1. ... Image File history File links US_Silvercert1. ...

In March 1964, the Secretary of the Treasury halted redemption of Silver Certificates for Silver Dollars. In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. Silver Certificates were abolished by Congress on June 4, 1963 and all redemption in silver ceased on June 24, 1968. Paper currency is still valid legal tender without the Silver Certificate, instead being backed simply by the strength of the U.S. economy. According to the U.S. treasury, "The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy." [1]

However, the Federal Reserve Act has a poison pill provision which requires all said Notes to be redeemed in silver if Congress ever decides to abolish it (subject to Congress amending that provision).^{[citation needed]} At such time a $1 Note should have the market value of one ounce of silver. In the meantime, the market has discounted such a possibility by valuing a $1 Note to be the amount of silver that it will buy as the inverse of the current spot price per ounce. Poison pill began as a reference to literal poison pills (often glass vials of cyanide salts) carried by various spies throughout history, and by Nazi leaders in WWII. Spies could take such pills when discovered, eliminating any possibility that they could be interrogated for the enemys gain. ...

Complete Series Catalogue

This is a chart of all the series of Silver Certificates printed. Each entry will include: series year, general description, and printing figures if available.

Small-Size Silver Certificates

Formal portrait of Mellon Andrew William Mellon (March 24, 1855–August 27, 1937) was an American banker, industrialist, philanthropist, art collector and Secretary of the Treasury from March 4, 1921. ... Ogden Livingston Mills (August 23, 1884–October 11, 1937) was an American businessman and politician. ... William Hartman Woodin (1868 - 1934) was a U.S. industrialist. ... William Alexander Julian (also known as W.A. Julian) served as Treasurer of the United States from June 1, 1933 - May 29, 1949 under Franklin Delano Roosevelt and Harry Truman. ... Henry Morgenthau Jr. ... Portrait of John W. Snyder U.S. Secretary of the Treasury painted by Greta Kempton. ... squibix 15:14, 12 November 2005 (UTC) . Category: Possible copyright violations ... Ivy Baker Priest (September 7, 1905-June 23, 1975) was a politician. ... Humphreys signature, as used on American currency George Magoffin Humphrey (March 8, 1890–January 20, 1970) was an American lawyer, businessman and Cabinet secretary. ... Robert Bernard Anderson (June 4, 1910–August 14, 1989) was a U.S. administrator and businessman. ... Dillons signature, as used on American currency Clarence Douglas Dillon (August 21, 1909 – January 10, 2003) son of Clarence and Ann (Douglass) Dillon, was U.S. Ambassador Extraordinary and Plenipotentiary to France (1953-1957) and 57th secretary of the United States Department of the Treasury (1961-1965). ...

See also

• Gold certificate
• Silver standard
• Silver as an investment