thumb|right|alt=$1 1935 silver certificate with Hawaii overprint|The silver certificate from the [[Hawaii overprint note|Hawaii overprint series]]
right|thumb|alt=$5 Series |[[1899 United States five-dollar Silver Certificate (Chief Note) depicting Running Antelope of the Húŋkpapȟa]]
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. They were produced in response to silver agitation by citizens who were angered by the Coinage Act of 1873, which had effectively placed the United States on a gold standard. 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.| group="nb" were issued initially in denominations from to (in 1878 and 1880) and in 1886 the , , and were authorized. In 1928, all United States bank notes were re-designed and the size reduced. The small-size silver certificate (1928–1964) was only regularly issued in denominations of , , and . 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 omitted language authorizing the coinage of "standard" and ended the bimetallic standard that had been created by Alexander Hamilton. 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. 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, began lobbying for change. Further public agitation for silver use was driven by fear that there was not enough money in the community. Members of Congress claimed ignorance that the 1873 law would lead to the demonetization of silver, despite having had three years to review the bill prior to enacting it to law. Some blamed the passage of the Act on a number of external factors including a conspiracy involving foreign investors and government conspirators. 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 million and million of silver bullion per month|group="nb"
Large-size silver certificates
thumb|[[Educational Series History Instructing Youth one-dollar silver certificate (1896). National Numismatic Collection]]
The first silver certificates (Series 1878) were issued in denominations of through . Reception by financial institutions was cautious. While more convenient and less bulky than dollar coins, the silver certificate was not accepted for all transactions. The Bland–Allison Act established that they were "receivable for customs, taxes, and all public dues," but silver certificates were not explicitly considered legal tender for private interactions (i.e., between individuals). by clearly authorizing them to be included in the lawful reserves of national banks. A general appropriations act of August 4, 1886, authorized the issue of , , and silver certificates. The introduction of low-denomination currency (as denominations of U.S. Notes under were put on hold) greatly increased circulation. Over the 12-year lifespan of the Bland–Allison Act, the United States government would receive a seigniorage amounting to roughly million (between and million per year), while absorbing over 60% of U.S. silver production. 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.
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.
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. 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 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. 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.
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). 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. Additional World War II emergency currency was issued in November 1942 for circulation in Europe and Northern Africa.
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). The Acts of 1939 and 1946 established floor prices for silver of 71 cents and 90.5 cents (respectively) per ounce. 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, while providing specific instruction regarding the disposition of silver held as reserves against issued certificates and the price at which silver may be sold.