Hobbies And Interests
Large-Sized Notes
The United States issued seven different series of large-sized silver certificates from 1878 to 1923, featuring some of the most beautiful designs ever put on paper money, according to CollectorsWeekly.com. They were issued in denominations ranging from $1 to $1,000. The large-sized silver certificates were the only U.S. paper money issues to feature a woman’s portrait. Martha Washington’s portrait appeared on the face of the $1 silver certificates of Series 1886 and 1891, and on the back of the $1 silver certificate of Series 1896. All large-sized silver certificates have a collector value that exceeds their face value.
Small-Sized Notes
Silver certificates, like all U.S. currency, were reduced 33 percent in size in 1928 and their design was standardized. They were issued from 1928 to 1963. There were five series of small-sized silver certificates, printed with blue treasury seals in $1, $5 and $10 denominations, according to CollectorsWeekly.com. Some of these have significant collector value but average circulated specimens of the most common small-sized series, 1935 and 1957, generally are worth only face value.
Redemption for Silver
Until March of 1964, silver certificates could be redeemed for silver dollars at the U.S. Treasury and at many Federal Reserve Banks. According to the U.S. Treasury’s website, Treasury Secretary C. Douglas Dillon ordered an end to silver dollar redemption, pursuant to the June 1963 act of Congress that ended production of silver certificates and silver coins. The act allowed redemption for silver bullion until June 1968. From 1964 to 1968, people who redeemed silver certificates received .7734 troy oz. of pure silver pellets sealed in a little glass tube for each dollar redeemed. That was equivalent to the silver content of a silver dollar.
Why Redemption Ended
Congress had two reasons for ending redemption of silver certificates. One reason, according to the Federal Reserve Bank of San Francisco website, was the rising market price of silver. By 1963, the price was reaching a point where the market value of the quantity of silver received by the bearer of a silver certificate would exceed the face value of the certificate, meaning the Treasury would be exchanging silver for silver certificates at an economic loss to the government.
Coins Were Rare
The second reason was because the 3 million silver dollars remaining in the government’s vaults all had high collector value, and there was no way to ensure equitable distribution among the people holding silver certificates. Those coins subsequently were sold to collectors by the U.S. Treasury through a series of mail-bid auctions.