Silver certificate (United States)
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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">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> They were produced in response to 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 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, generally Template:Cvt longer and Template:Cvt wider than modern U.S. paper currency, (1878 to 1923)<ref group="nb">Large size notes represent the earlier types or series of U.S. banknotes. Their "average" dimension is 7.375 × 3.125 inches (187 × 79 mm). Small size notes (described as such due to their size relative to the earlier large size notes) are an "average" 6.125 × 2.625 inches (156 × 67 mm), the size of modern U.S. currency. "Each measurement is +/- 0.08 inches (2mm) to account for margins and cutting".<ref>Friedberg & Friedberg, p. 7.</ref></ref> were issued initially in denominations from Template:US$ to Template:US$ (in 1878 and 1880)<ref>Blake, p. 18.</ref><ref name="Friedberg74">Friedberg & Friedberg, p. 74.</ref> and in 1886 the Template:US$, Template:US$, and Template:US$ were authorized.<ref name="Friedberg74" /><ref name="Knox, p. 155">Knox, p. 155.</ref> In 1928, all United States bank notes were re-designed and the size reduced.<ref>Friedberg & Friedberg, p. 185.</ref> The small-size silver certificate (1928–1964) was only regularly issued in denominations of Template:US$, Template:US$, and Template:US$.<ref name="Friedberg187">Friedberg & Friedberg, p. 187.</ref> The complete type set below is part of the National Numismatic Collection at the Smithsonian's National Museum of American History.
History
The Coinage Act of 1873 intentionally<ref>Friedman, p. 1166.</ref><ref>O'Leary, p. 392.</ref> omitted language authorizing the coinage of "standard"<ref name="Leavens24"/> silver dollars<ref name="Barnett 178">Barnett, p. 178.</ref> and ended the bimetallic standard<ref>Friedman, p. 1165.</ref> that had been created by Alexander Hamilton.<ref>Lee, p. 388.</ref><ref group="nb">Some have suggested that the bimetallic standard was actually initiated by Thomas Jefferson.<ref>Carothers, p. 5.</ref></ref> While the Coinage Act of 1873 stopped production of silver dollars, it was the 1874 adoption of Section 3568 of the Revised Statutes that actually removed legal tender status from silver certificates in the payment of debts exceeding five dollars.<ref>O'Leary, p. 388.</ref> By 1875 business interests invested in silver (e.g., Western banks, mining companies) wanted the bimetallic standard restored. People began to refer to the passage of the Act as the Crime of '73. Prompted by a sharp decline in the value of silver in 1876, Congressional representatives from Nevada and Colorado, states responsible for over 40% of the world's silver yield in the 1870s and 1880s,<ref>Leavens, p. 36.</ref> began lobbying for change. Further public agitation for silver use was driven by fear that there was not enough money in the community.<ref>Taussig, 1892, p. 11.</ref> Members of Congress claimed ignorance that the 1873 law would lead to the demonetization of silver,<ref name="Leavens38">Leavens, p. 38.</ref> despite having had three years to review the bill prior to enacting it to law.<ref>Lee, p. 393.</ref> Some blamed the passage of the Act on a number of external factors including a conspiracy involving foreign investors and government conspirators.<ref name="Barnett 178"/> In response, the Bland–Allison Act, as it came to be known, was passed by Congress (over a presidential veto)<ref name="Lee, p. 396">Lee, p. 396.</ref> 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 Template:US$ million and Template:US$ million of silver bullion per month<ref>Agger, p. 262.</ref><ref name="Knox153"/> from mining companies in the West, to be minted into coins.<ref group="nb">Although the exact monthly purchase was left to the discretion of the Secretary of the Treasury, the Template:US$ million minimum was never exceeded.<ref>Taussig, 1892, p. 8.</ref></ref>
Large-size silver certificates
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The first silver certificates (Series 1878) were issued in denominations of Template:US$ through Template:US$.<ref group="nb">"The act of February 28, 1878, also authorized the holder of these silver dollars to deposit: the same with the Treasurer, or any Assistant Treasurer, of the United States, in sums not less than ten dollars, and receive therefor certificates of not less than ten dollars each, corresponding with the denominations of the United States notes."<ref>Knox, p. 152.</ref></ref> Reception by financial institutions was cautious.<ref>Taussig, 1892, p. 15.</ref> While more convenient and less bulky than dollar coins, the silver certificate was not accepted for all transactions.<ref>Taussig, 1892, p. 10.</ref> The Bland–Allison Act established that they were "receivable for customs, taxes, and all public dues,"<ref name="Lee, p. 396"/> and could be included in bank reserves,<ref name="Knox153">Knox, p. 153.</ref> but silver certificates were not explicitly considered legal tender for private interactions (i.e., between individuals).<ref name="Knox153"/> Congress used the National Banking Act of July 12, 1882, to clarify the legal tender status of silver certificates<ref>Taussig, 1892, p. 16.</ref> by clearly authorizing them to be included in the lawful reserves of national banks.<ref name="Champ&Thomson12">Champ & Thomson, p. 12.</ref> A general appropriations act of August 4, 1886, authorized the issue of Template:US$, Template:US$, and Template:US$ 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 Template:US$ 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 Template:US$ million (between Template:US$ and Template:US$ million per year),<ref name="Leavens39">Leavens, p. 39.</ref> while absorbing over 60% of U.S. silver production.<ref name="Leavens39"/>
Small-size silver certificates
Treasury Secretary Franklin MacVeagh (1909–13) appointed a committee to investigate possible advantages (e.g., reduced cost, increased production speed) to issuing smaller sized United States banknotes.<ref name="Schwartz&Lindquist9">Schwartz & Lindquist, p. 9.</ref> Due in part to the outbreak of World War I and the end of his appointed term, any recommendations may have stalled. On August 20, 1925, Treasury Secretary Andrew W. Mellon appointed a similar committee and in May 1927 accepted their recommendations for the size reduction and redesign of U.S. banknotes.<ref name="Schwartz&Lindquist9"/> On July 10, 1929, the new small-size currency was issued.<ref name="BEP History">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
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.
The 1928 and 1934 series one-dollar silver certificate came to be known as a Funnyback because of the image on the reverse. People called the note the Funnyback based on the dramatically lighter green ink used on the reverse and unusually large font which was used for the word "ONE" in the center of the design. The obverse carries the portrait of the first American president, George Washington.<ref name="CW">Template:Cite news</ref>
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>{{#invoke:citation/CS1|citation |CitationClass=web }}</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 Template:US$ 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>{{#invoke:citation/CS1|citation |CitationClass=web }}</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>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
World War II Issues
In response to the Japanese attack on Pearl Harbor, the Hawaii overprint note was ordered from the Bureau of Engraving and Printing on June 8, 1942 (all were made-over 1934–1935 bills).<ref name="BEP History"/> Issued in denominations of Template:US$, Template:US$, Template:US$, and Template:US$, only the Template:US$ was a silver certificate, the others were Federal Reserve Notes.<ref name="Schwartz&Lindquist24">Schwartz & Lindquist, p. 24.</ref> Stamped "HAWAII" (in small solid letters on the obverse and large hollow letters on the reverse), with the Treasury seal and serial numbers in brown instead of the usual blue, these notes could be demonetized in the event of a Japanese invasion.<ref name="Cuhaj133">Cuhaj, p. 133.</ref> Additional World War II emergency currency was issued in November 1942 for circulation in Europe and Northern Africa.<ref name="BEP History"/> Printed with a bright yellow seal, these notes ($1, Template:US$, and Template:US$) could be demonetized should the United States lose its position in the European or North African campaigns.<ref name="Schwartz&Lindquist24"/>
"Star notes"
When a bill is damaged in printing it is normally replaced by another one (the star replaces a letter at the edge of the note). To keep the amounts issued consistent, these replacement banknotes are normally indicated by a star in the separately sequenced serial number. For silver certificates this asterisk appears at the beginning of the serial number.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
End of the silver certificates
In the nearly three decades since passage of the Silver Purchase Act of 1934, the annual demand for silver bullion rose steadily from roughly 11 million ounces (1933) to 110 million ounces (1962).<ref name="Dillon401">Dillon, p.401.</ref> The Acts of 1939 and 1946 established floor prices for silver of 71 cents and 90.5 cents (respectively) per ounce.<ref name="Dillon401"/> Predicated on an anticipated shortage of silver bullion,<ref name="Ascher, p. 99">Ascher, p. 99.</ref><ref name="Dillon400">Dillon, p.400.</ref> Public Law 88-36 (PL88-36) was enacted on June 4, 1963, which repealed the Silver Purchase Act of 1934, and the Acts of July 6, 1939, and July 31, 1946,<ref name="PL88-36">Template:Cite report</ref> while providing specific instruction regarding the disposition of silver held as reserves against issued certificates and the price at which silver may be sold.<ref group="nb"> "SEC. 2. The Secretary of the Treasury shall maintain the ownership and the possession or control within the United States of an amount of silver of a monetary value equal to the face amount of all outstanding silver certificates. Unless the market price of silver exceeds its monetary value, the Secretary of the Treasury shall not dispose of any silver held or owned by the United States in excess of that required to be held as reserves against outstanding silver certificates, but any such excess silver may be sold to other departments and agencies of the Government or used for the coinage of standard silver dollars and subsidiary silver coins. Silver certificates shall be exchangeable on demand at the Treasury of the United States for silver dollars or, at the option of the Secretary of the Treasury, at such places as he may designate, for silver bullion of a monetary value equal to the face amount of the certificates".<ref name="PL88-36"/></ref> It also amended the Federal Reserve Act to authorize the issue of lower denomination notes (i.e., Template:US$ and Template:US$),<ref name="PL88-36"/> allowing for the gradual retirement (or swapping out process) of Template:US$ silver certificates and releasing silver bullion from reserve.<ref name="Dillon400"/> In repealing the earlier laws, PL88-36 also repealed the authority of the Secretary of the Treasury to control the issue of silver certificates. By issuing Executive Order 11110, President John F. Kennedy was able to continue the Secretary's authority.<ref>Grey, p. 83.</ref> While retaining their status as legal tender, the silver certificate had effectively been retired from use.<ref name="BEP History"/>
In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for silver dollar coins; during the following four years, silver certificates were redeemable in uncoined silver "granules".<ref name="Ascher, p. 99"/> All redemption in silver ceased on June 24, 1968.<ref name="BEP website"/> While there are some exceptions (particularly for some of the very early issues as well as the experimental bills) the vast majority of small sized one dollar silver certificates, especially non-star or worn bills of the 1935 and 1957 series, are worth little or nothing above their face values. They can still occasionally be found in circulation.
Issue
Large-size United States silver certificates (1878–1923)
Series and varieties
| Series | Value | Features/varieties |
|---|---|---|
| 1878 and 1880<ref group="nb">Notes issued under a given Series (e.g., Series 1880, Series 1899) are, in some cases, released over a period of years, as reflected in the Friedberg number signature and seal varieties. For example, based on dates of the signature combinations,<ref>Friedberg & Friedberg, p. 303.</ref> the Series 1899 Template:US$ silver certificate was first issued with the signature combination of Lyons and Robert (in office together from 1898 to 1905) and last issued with the Speelman and White signatures (in office together from 1922 to 1927). Therefore, a Series 1899 note could have been issued as late as 1927. </ref> | Template:Hlist | In addition to the two engraved signatures customary on United States banknotes (the Register of the Treasury and Treasurer of the United States), the first issue of the Series 1878 notes (similar to the early Gold Certificate) included a third signature of one of the Assistant Treasurers of the United States (in New York, San Francisco, or Washington DC).<ref>Blake, p. 19.</ref> Known as a countersigned or triple-signature note, this feature existed for the first run of notes issued in 1880, but was then removed from the remaining 1880 issues.<ref name="Friedberg74"/> |
| 1886 | Template:Hlist | The Act of August 4, 1886, authorized the issue of lower denomination ($1, Template:US$, and Template:US$) silver certificates.<ref name="Knox, p. 155"/> Similar to the Series 1878/1880 notes, the Treasury seal characteristics (size, color, and style) varies with the change of the Treasury signatures.<ref name="Friedberg&Friedberg6-7">Friedberg & Friedberg, pp. 6–7.</ref> The series is known for the ornate engraving on the reverse of the note. |
| 1891 | Template:Hlist | The Bureau of Engraving and Printing introduced the process of "resizing" paper for Series 1891 notes.<ref>Template:Cite report</ref> |
| 1896 | Template:Hlist | The Educational Series is considered to be the most artistically designed bank notes printed by the United States.<ref name="Friedberg74" /> |
| 1899 | Template:Hlist | Large-size silver certificates from the Series of 1899 forward have a blue Treasury seal and serial numbers.<ref>Friedberg & Friedberg, pp. 74–81.</ref> |
| 1908 | $10 | |
| 1923 | Template:Hlist |
Complete typeset
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Small-size United States silver certificates (1928–1957)
| Value | Series | Fr.<ref group="nb">Because small-size silver certificates are presented in ascending Friedberg number, World War II emergency issue notes (2300, 2306, 2307, and 2309) are presented out of chronological order at the end of the table.</ref> | Image | Portrait | Signature & seal varieties |
|---|---|---|---|---|---|
| $1 | 1928 to 1928-E | Fr.1600 | $1 Silver Certificate, Series 1928, Fr.1600, depicting George Washington | George Washington | 1600 – Tate and Mellon (1928) – blue |
1601 – Woods and Mellon (1928A) – blue<ref group="nb">Serial blocks of the 1928A and 1928B silver certificates that were lettered XB or YB were made of experimental paper, and ZB of regular paper as a control.<ref>Schwartz & Lindquist, p. 31.</ref></ref> | 1602 – Woods and Mills (1928B) – blue | 1603 – Woods and Woodin (1928C) – blue | 1604 – Julian and Woodin (1928D) – blue | 1605 – Julian and Morgenthau (1928E) – blue |
| $1 | 1934 | Fr.1606 | $1 Silver Certificate, Series 1934, Fr.1606, depicting George Washington | George Washington | 1606 – Julian and Morgenthau (1934) – blue |
| $1 | 1935 to 1935-G | Fr.1607 | $1 Silver Certificate, Series 1935, Fr.1607, depicting George Washington | George Washington | 1607 – Julian and Morgenthau (1935) – blue |
1608 – Julian and Morgenthau (1935A)– blue | 1609 – Julian and Morgenthau (1935A) R-Exp – blue.<ref group="nb">Series 1935A "Experimental" bills were stamped with either a red "R" or "S" while testing regular and synthetic papers.<ref name="Friedberg187"/></ref> | 1610 – Julian and Morgenthau (1935A) S-Exp – blue | 1611 – Julian and Vinson (1935B) – blue | 1612 – Julian and Snyder (1935C) – blue | 1613W – Clark and Snyder (1935D) Wide – blue<ref group="nb">For 1935D, narrow and wide refer to the width of design features on the reverse of the note. The wide variety is 0.0625 in (1.5875 mm) larger and has a four-digit reverse plate number less than 5016.<ref>Friedberg & Friedberg, p. 170.</ref></ref> | 1613N – Clark and Snyder (1935D) Narrow – blue | 1614 – Priest and Humphrey (1935E) – blue | 1615 – Priest and Anderson (1935F) – blue | 1616 – Smith and Dillon (1935G) – blue |
| $1 | 1935-G to 1957-B | Fr.1619 | $1 Silver Certificate, Series 1957, Fr.1619, depicting George Washington | George Washington | 1617 – Smith and Dillon (1935G) – blue<ref group="nb">The motto ("In God We Trust") was added to the Series of 1935G notes midway through the issue.<ref name="Friedberg187"/></ref> |
1618 – Granahan and Dillon (1935H) – blue | 1619 – Priest and Anderson (1957) – blue | 1620 – Smith and Dillon (1957A) – blue | 1621 – Granahan and Dillon (1957B) – blue |
| $5 | 1934 to 1934-D | Fr.1650 | $5 Silver Certificate, Series 1934, Fr.1650, depicting Abraham Lincoln | Abraham Lincoln | 1650 – Julian and Morgenthau (1934) – blue |
1651 – Julian and Morgenthau (1934A) – blue | 1652 – Julian and Vinson (1934B) – blue | 1653 – Julian and Snyder (1934C) – blue | 1654 – Clark and Snyder (1934D) – blue |
| $5 | 1953 to 1953-C | Fr.1655 | $5 Silver Certificate, Series 1953, Fr.1655, depicting Abraham Lincoln | Abraham Lincoln | 1655 – Priest and Humphrey (1953) – blue |
1656 – Priest and Anderson (1953A) – blue | 1657 – Smith and Dillon (1953B) – blue | 1658 – Granahan and Dillon (1953C) – blueTemplate:Refn |
| $10 | 1933 to 1933-A | Fr.1700 | $10 Silver Certificate, Series 1933, Fr.1700, depicting Alexander Hamilton | Alexander Hamilton | 1700 – Julian and Woodin (1933) – blue<ref group="nb">Very few Series 1933 Template:US$ Silver Certificates were released before they were replaced by Series 1934 and most of those remaining were consigned to destruction; only a few dozen are known to collectors today.<ref>Schwartz & Lindquist, p. 156.</ref></ref>
1700a – Julian and Morgenthau (1933A) – blueTemplate:Refn |
| $10 | 1934 to 1934-D | Fr.1701 | $10 Silver Certificate, Series 1934, Fr.1701, depicting Alexander Hamilton | Alexander Hamilton | 1701 – Julian and Morgenthau (1934) – blue |
1702 – Julian and Morgenthau (1934A) – blue | 1703 – Julian and Vinson (1934B) – blue | 1704 – Julian and Snyder (1934C) – blue | 1705 – Clark and Snyder (1934D) – blue |
| $10 | 1953 to 1953-B | Fr.1706 | $10 Silver Certificate, Series 1953, Fr.1706, depicting Alexander Hamilton | Alexander Hamilton | 1706 – Priest and Humphrey (1953) – blue |
1707 – Priest and Anderson (1953A) – blue | 1708 – Smith and Dillon (1953B) – blue |
| $1 | 1935-A | Fr.2300 | $1 Silver Certificate, Series 1935A, Fr.2300, depicting George Washington | George Washington | 2300 – Julian and Morgenthau – brown |
| $1 | 1935-A | Fr.2306 | $1 Silver Certificate, Series 1935A, Fr.2306, depicting George Washington | George Washington | 2306 – Julian and Morgenthau (1935A) – yellow |
| $5 | 1934-A | Fr.2307 | $5 Silver Certificate, Series 1934A, Fr.2307, depicting Abraham Lincoln | Abraham Lincoln | 2307 – Julian and Morgenthau (1934A) – yellow |
| $10 | 1934 to 1934-A | Fr.2309 | $10 Silver Certificate, Series 1934A, Fr.2309, depicting Alexander Hamilton | Alexander Hamilton | 2308 – Julian and Morgenthau (1934) – yellow |
2309 – Julian and Morgenthau (1934A) – yellow |
See also
Explanatory footnotes
Citations
General and cited references
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Further reading
External links
Template:Obsolete U.S. currency and coinage Template:Money and central banking within the contemporary United States (pre–1913)