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 Replies: 7 / Views: 1,791 |
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Pillar of the Community
Egypt
3470 Posts |
Hi all,
I have been reading a lot lately about US silver certificates and I dont think I understood all what I read.
On most large-size Silver Certificates: "This certifies that there is on deposit 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, 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."
so please pardon my ignorance asking this question;
Does the US treasury has still obligation to pay on demand an equivalent value of silver to the bearer of silver certificates Series before 1934?
Thanks Edited by EgCollector
02/14/2012 07:42 am
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Pillar of the Community
United States
3486 Posts |
Prior to 1935, the last year when the US produced silver dollars, the certificates displayed what you see.
After 1935, silver was kept in bullion form in vaults.
When the price of silver began to rise above the set price of $1.29 an ounce, the government redeemed the silver certificates with silver granules.
After a certain date, which I cannot remember, the silver certificates were no longer redeemed for silver.
I hope that this helps you with your research.
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Pillar of the Community
United States
507 Posts |
The initial thought was that for your 'paper money' you could exchange it for real silver coins. This was true until the 'silver window' was closed in the late 1960s, at about the same time they stopped making silver coins and started making copper-nickel coins. I've read that as the deadline got nearer, it got to the point that the government was not even exchanging silver coins, but an equivalent weight of silver granules.
This was before my time, but several of our members remember it well.
The gov't has no obligation to pay silver (or gold) for these bills anymore. They are strictly collectibles.
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Pillar of the Community
United States
1358 Posts |
They are still all worth face value, though.
But, yeah, they went from "representing" money in the form of silver/gold, to "being" money in the form of paper.
Bad trade if you ask me.
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Valued Member
United States
64 Posts |
From Wikipedia:
This Series 1958 introduced an additional $4.29 billion worth of United States Notes into circulation, consisting of $2.00 and $5.00 bills; and although they were never issued, $10.00 and $20.00 notes were in the process of being printed when Kennedy was murdered in 1963. But the Treasury was being emptied of silver rapidly; in March 1964 issuance of the Series 1958 Silver Certificate was stopped and redemption in silver dollars was suspended; June 24, 1968 was the last day for redemption in silver bullion.
Finally, President Richard Nixon announced[7] that the United States would no longer redeem currency for gold or any other precious metal, forming the final step in abandoning the gold and silver standards.
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Rest in Peace
United States
9104 Posts |
Like our treaties with Native Americans, the gubmint lied.
Such notes can still be spent, but the last the gubmint would give silver for them was June 24, 1968.
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Rest in Peace
United States
9104 Posts |
If you had $1300 or more, you'd get 1000 oz silver bars, the size of a loaf of bread. Smaller quantities got the granules.
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Pillar of the Community
 Egypt
3470 Posts |
Thank you all for your replies .... much appreciated  |
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Replies: 7 / Views: 1,791 |
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Posted 02/14/2012 08:07 am
