What Are Silver Certificates?

The creation of silver certificates is a part of the history of paper currency in the United States and was backed by silver. These unique certificates were first issued in 1878. They were issued in several different series between 1878 and 1957 and some are quite valuable to collectors.

Silver Certificate History

The first silver certificates were issued by the federal government and could be exchanged for silver dollars, made from real silver metal. This was an effort by the U.S. Government to capitalize on the vast silver deposits discovered in the western United States. These first certificates were produced because silver dollars were too large and heavy for most people to carry. There was a preference for paper money.

Silver certificates were not issued on an annual basis. There were five different issues with notes in denominations from $1 to $1000 for the first production. These silver certificates have become very rare and are in demand by collectors. Silver certificates continued to be produced through 1957, when production was discontinued. The certificates could still be turned in for silver dollars until 1964 when their use was discontinued. In June of 1967, Congress issued an act that allowed these silver certificates to be redeemed for silver bullion until June 1968. Silver certificates have not been issued since 1957, but are still considered legal tender and can be used in the same way a Federal Reserve Note is used.  They cannot be exchanged directly for silver.

Value of Silver Certificates

Silver certificates were issued in a variety of denominations, but many are more valuable than the face value amount of the note. The 1899 $1 Silver Certificate is a favorite of collectors. Valued between $40 and $250, depending on the condition of the certificate, these documents are extremely rare. The 1923 $1 notes are also popular, as this was the last year the large paper notes were issued. Smaller notes were issued in 1928 when the next series of silver certificates was created. These are often worth $20 and up, depending on their condition.

Modern silver certificates, created in 1934, 1935, 1938 and 1957, are only worth slightly more than their face value. There are some specific notes that are worth more from these years. One example is star notes, those certificates with a star instead of the suffix letter on the serial number. Specific notes should be examined by an expert to determine true value. The Silver Certificates are only one of the many specialized paper money items issued by the government or private banks throughout the history of the United States.

Artistry of Silver Certificates

Most people today are used to seeing very little variation in the style of paper money. In 1886, when silver certificates were first issued, the Bureau of Engraving and Printing got to design an entirely new paper certificate. Four artists were commissioned to create engraving plates for the new currency. Walter Shirlaw, Will H. Law, C. S. Reinhart and Edwin H. Blashfield were offered the opportunity to design the new currency with an $800 reward available for the final product.

The artwork for the bills has never been duplicated on any subsequent issue of paper currency in the United States. The front of each bill has a mural, while the back has one or more famous historical people. The $1 had George and Martha Washington depicted. The $5 had General Ulysses S. Grant and General Philip Sheridan, victorious northern generals in the Civil War. The $2 bill has Robert Fulton and Samuel F.B. Morse on the back. They were famous inventors of their time. However, not everyone liked the style of these new certificates.

Banks complained that the notes were not clearly marked for denominations and the ink was easily smudged after some use. The next issue of the notes corrected these problems, but also eliminated much of the artistry. As a result, these first notes are extremely valuable both for their historical relevance and for their artistic form.

Silver certificates are highly collectible and older or rare denominations can be quite valuable. These paper certificates are considered legal tender and can be used in the same way a Federal Reserve Note is used, but most are worth more to a collector. The evolution of silver certificates and paper money is intertwined with the history of America and a study of this history can be a fascinating way to learn more about the United States.