99% of the time 1935 $1 silver certificates are worth around $2. These were printed by the billions and they just simply aren’t rare and have minimal interesting to serious collectors. The last time silver certificates rolled off the printing presses was in 1957 but it should be notes that some of the bulk of silver certificates that were printed way back in 1935 weren't released to the public until 1963.
You can buy packs of 100 consecutive 1935 silver certificates in circulated condition for around $300 and if uncirculated that same pack would be worth about $600-$1,000.
There are many different types of 1935 $1 silver certificates. 1935A, 1935B, 1935C, 1935D, 1935E, 1935F, 1935G, and 1935H were all printed in addition to the regular 1935 one dollar silver certificates.
One big misconception is that “IN GOD WE TRUST” should be on all of the 1935 notes. That is not true. In God We Trust was not put on currency until 1956. So only some 1935G and all 1935H $1 silver certificates will say that. All 1935 one dollar silver certificates have the following writing on them:
“Silver Certificate - This certifies that there is on deposit in the treasury of The United States of America One Dollar In silver payable on demand”
“This certificate is legal tender for all debts public and private”
1935 $1 silver certificates also come in many different block varieties. So a note could have the serial number AxxxxxxxxA or something like ZxxxxxxxxB, and all combinations in between. These do not materially affect values.
Star notes were also printed for the series of 1935 $1 silver certificates. You can learn more about 1935 star notes here at my blog address http://secretsofandstoriesonuscurrency.blogspot.com/2015/02/what-is-star-note.html
There are also some very interesting experimental R & S notes printed for the 1935 one dollar series. Learn more about R & S notes here. Also check out $1 Hawaii and $1 North Africa notes which are both 1935A silver certificates.
I do buy 1935 $1 silver certificates.
Saturday, April 25, 2015
Tuesday, March 24, 2015
General Information
Silver Certificates A silver certificate is a certificate of ownership that silver owners hold instead of storing the actual silver. Several countries have issued silver certificates, including Cuba, the Netherlands, and the United States.
Cuba
Cuban silver certificates were issued between 1934 and 1949 (and circulated from 1935 to the early 1950s). Prior and subsequent issues of Cuban banknotes were engraved and printed by private bank note companies in the United States, but the series from 1934 to 1949 were designed, engraved, and printed by the US at the Bureau of Engraving and Printing (BEP).
The first Cuban banknotes were issued in 1857 for El Banco Español De La Habana. Beginning in the late 1860s, Cuba contracted the National Bank Note Company (NBNC) for two issues of banknotes in 1869 and 1872. After absorbing NBNC, the American Bank Note Company (ABNC) engraved and printed Cuban banknotes for issues in 1889, 1896, 1897, 1905 for the National Bank of Cuba, 1944, and a 1949–50 issue for the Banco Nacional De Cuba (printed until 1960). Between 1905 and the introduction of BEP issued Cuban silver certificates in 1934, no banknotes were produced. Certificado De Plata 1 Peso Note, 1934-1949 Issue, Series 1938. Rare and very seldom seen are these Pre-Castro era Cuban Silver Certificates.
Netherlands
In 1914, because of silver shortage for minting, the Dutch government introduced silver certificates (zilverbonnen) for 1, 2½ and 5 guilder. Although the 5 guilder were only issued that year, the 1 guilder notes continued until 1920 and the 2½ guilder until 1927. In 1926, the Netherlands Bank introduced 20 guilder notes, followed by 50 guilder in 1929 and 500 guilder in 1930. These introductions followed the cessation of production of the unusual 40, 60 and 300 guilder notes during the 1920s. In 1938, silver notes were reintroduced for 1 and 2½ guilders.
I have not found any evidence that any other government printed silver certificates.
Silver Certificates were first issued in 1878 as a result of the Free Silver movement that began in the early 1870s. This movement called for the production of silver coinage, rather than paper notes, by the Government in order to increase the money supply. Advocates of free silver argued that producing more “greenbacks” would not increase the money supply because people would simply redeem the notes for gold. Supporters of the movement included owners of silver mines in the West, farmers hoping that an expanded currency would increase the price of their crops, and debtors looking to ease the repayment of debts.
The movement was successful in bringing about legislation that required the purchase and coinage of silver bullion by the Government. The legislation also called for the issue of Silver Certificates in return for deposits of silver coinage with the Treasury. The Treasury then maintained enough silver coinage to redeem the certificates if presented for payment. Although still considered a valid currency, Silver Certificates have not been issued since 1965. (see "End of the Silver Certificate" notes below)
Due to waning Government stocks of silver, on March 25, 1964, the Secretary of the Treasury announced that Silver Certificates would no longer be redeemable for silver dollars. Subsequently, the act of June 24, 1967, provided that Silver Certificates could be exchanged for silver bullion for a period of one year, until June 24, 1968. Thereafter, they could be redeemed at face value only from money in the general fund of the Treasury.
As noted above Silver certificates were 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 Fourth Coinage Act, 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 – 24 June 1967 to 24 June 1968) in raw silver bullion. Since 1968 they have been redeemable only in Federal Reserve Notes and are thus obsolete, but still valid legal tender. Here are two of the notes 1) a silver certificate and 2) the current currency being used, the Federal Reserve Note:
Large-size silver certificates
(1878 to 1923) were issued initially in denominations from $10 to $1,000 (in 1878 and 1880) and in 1886 the $1, $2, and $5 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 issued in denominations of $1, $5, and $10. The complete type set below is part of the National Numismatic Collection at the Smithsonian's National Museum of American History.
The first silver certificates (Series 1878) were issued in denominations of $10 through $1,000. 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,” and could be included in bank reserves, but silver certificates were not explicitly considered legal tender for private interactions (i.e., between individuals). Congress used the National Banking Act of 12 July 1882 to clarify the legal tender status of silver certificates by clearly authorizing them to be included in the lawful reserves of national banks. A general appropriations act of 4 August 1886 authorized the issue of $1, $2, and $5 silver certificates. The introduction of low-denomination currency (as denominations of U.S. Notes under $5 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 or "right of the lord to mint money" amounting to roughly $68 million (between $3 and $9 million per year), while absorbing over 60% of U.S. silver production.
Here are some images of Large Silver Certificate denominations:
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. Due in part to the outbreak of World War I and the end of his appointed term, any recommendations may have stalled. On 20 August 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. On 10 July 1929 the new small-size currency was issued.
In keeping with the verbage 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." 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.
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. Additional changes, particularly when either of the two signatures was altered, led to a letter being added below the date. Thus 1935 dated dollar bills 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 dollar bills were released as late as 1963.
The 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. Predicated by an anticipated shortage of silver bullion, Public Law 88-36 (PL88-36) was enacted on 4 June 1963 which repealed the Silver Purchase Act of 1934, and the Acts of 6 July 1939 and 31 July 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. It also amended the Federal Reserve Act to authorize the issue of lower denomination notes (i.e., $1 and $2), allowing for the gradual retirement (or swapping out process) of $1 silver certificates and releasing silver bullion from reserve. 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. While retaining their status as legal tender, the silver certificate had effectively been retired from use.
In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for coined silver dollars; during the following four years, silver certificates were redeemable in un-coined silver "granules." All redemption in silver ceased on 24 June 1968. 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 silver certificates, especially non-star or worn dollar bills of the 1935 and 1957 series, are worth little or nothing beyond their face values.
Special Features
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). 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.
The Act of 4 August 1886 authorized the issue of lower denomination ($1, $2, and $5) silver certificates. Similar to the Series 1878/1880 notes, the Treasury seal characteristics (size, color, and style) varies with the change of the Treasury signatures. The series is known for the ornate engraving on the reverse of the note.
Large-size silver certificates from the Series of 1899 forward have a blue Treasury seal and serial numbers.
Here are some pictures of some graded Silver Certificates:
Cuba
Cuban silver certificates were issued between 1934 and 1949 (and circulated from 1935 to the early 1950s). Prior and subsequent issues of Cuban banknotes were engraved and printed by private bank note companies in the United States, but the series from 1934 to 1949 were designed, engraved, and printed by the US at the Bureau of Engraving and Printing (BEP).
The first Cuban banknotes were issued in 1857 for El Banco Español De La Habana. Beginning in the late 1860s, Cuba contracted the National Bank Note Company (NBNC) for two issues of banknotes in 1869 and 1872. After absorbing NBNC, the American Bank Note Company (ABNC) engraved and printed Cuban banknotes for issues in 1889, 1896, 1897, 1905 for the National Bank of Cuba, 1944, and a 1949–50 issue for the Banco Nacional De Cuba (printed until 1960). Between 1905 and the introduction of BEP issued Cuban silver certificates in 1934, no banknotes were produced. Certificado De Plata 1 Peso Note, 1934-1949 Issue, Series 1938. Rare and very seldom seen are these Pre-Castro era Cuban Silver Certificates.
Netherlands
In 1914, because of silver shortage for minting, the Dutch government introduced silver certificates (zilverbonnen) for 1, 2½ and 5 guilder. Although the 5 guilder were only issued that year, the 1 guilder notes continued until 1920 and the 2½ guilder until 1927. In 1926, the Netherlands Bank introduced 20 guilder notes, followed by 50 guilder in 1929 and 500 guilder in 1930. These introductions followed the cessation of production of the unusual 40, 60 and 300 guilder notes during the 1920s. In 1938, silver notes were reintroduced for 1 and 2½ guilders.
I have not found any evidence that any other government printed silver certificates.
Silver Certificates were first issued in 1878 as a result of the Free Silver movement that began in the early 1870s. This movement called for the production of silver coinage, rather than paper notes, by the Government in order to increase the money supply. Advocates of free silver argued that producing more “greenbacks” would not increase the money supply because people would simply redeem the notes for gold. Supporters of the movement included owners of silver mines in the West, farmers hoping that an expanded currency would increase the price of their crops, and debtors looking to ease the repayment of debts.
The movement was successful in bringing about legislation that required the purchase and coinage of silver bullion by the Government. The legislation also called for the issue of Silver Certificates in return for deposits of silver coinage with the Treasury. The Treasury then maintained enough silver coinage to redeem the certificates if presented for payment. Although still considered a valid currency, Silver Certificates have not been issued since 1965. (see "End of the Silver Certificate" notes below)
Due to waning Government stocks of silver, on March 25, 1964, the Secretary of the Treasury announced that Silver Certificates would no longer be redeemable for silver dollars. Subsequently, the act of June 24, 1967, provided that Silver Certificates could be exchanged for silver bullion for a period of one year, until June 24, 1968. Thereafter, they could be redeemed at face value only from money in the general fund of the Treasury.
As noted above Silver certificates were 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 Fourth Coinage Act, 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 – 24 June 1967 to 24 June 1968) in raw silver bullion. Since 1968 they have been redeemable only in Federal Reserve Notes and are thus obsolete, but still valid legal tender. Here are two of the notes 1) a silver certificate and 2) the current currency being used, the Federal Reserve Note:
Large-size silver certificates
(1878 to 1923) were issued initially in denominations from $10 to $1,000 (in 1878 and 1880) and in 1886 the $1, $2, and $5 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 issued in denominations of $1, $5, and $10. The complete type set below is part of the National Numismatic Collection at the Smithsonian's National Museum of American History.
The first silver certificates (Series 1878) were issued in denominations of $10 through $1,000. 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,” and could be included in bank reserves, but silver certificates were not explicitly considered legal tender for private interactions (i.e., between individuals). Congress used the National Banking Act of 12 July 1882 to clarify the legal tender status of silver certificates by clearly authorizing them to be included in the lawful reserves of national banks. A general appropriations act of 4 August 1886 authorized the issue of $1, $2, and $5 silver certificates. The introduction of low-denomination currency (as denominations of U.S. Notes under $5 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 or "right of the lord to mint money" amounting to roughly $68 million (between $3 and $9 million per year), while absorbing over 60% of U.S. silver production.
Here are some images of Large Silver Certificate denominations:
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. Due in part to the outbreak of World War I and the end of his appointed term, any recommendations may have stalled. On 20 August 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. On 10 July 1929 the new small-size currency was issued.
In keeping with the verbage 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." 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.
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. Additional changes, particularly when either of the two signatures was altered, led to a letter being added below the date. Thus 1935 dated dollar bills 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 dollar bills were released as late as 1963.
The 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. Predicated by an anticipated shortage of silver bullion, Public Law 88-36 (PL88-36) was enacted on 4 June 1963 which repealed the Silver Purchase Act of 1934, and the Acts of 6 July 1939 and 31 July 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. It also amended the Federal Reserve Act to authorize the issue of lower denomination notes (i.e., $1 and $2), allowing for the gradual retirement (or swapping out process) of $1 silver certificates and releasing silver bullion from reserve. 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. While retaining their status as legal tender, the silver certificate had effectively been retired from use.
In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for coined silver dollars; during the following four years, silver certificates were redeemable in un-coined silver "granules." All redemption in silver ceased on 24 June 1968. 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 silver certificates, especially non-star or worn dollar bills of the 1935 and 1957 series, are worth little or nothing beyond their face values.
Special Features
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). 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.
The Act of 4 August 1886 authorized the issue of lower denomination ($1, $2, and $5) silver certificates. Similar to the Series 1878/1880 notes, the Treasury seal characteristics (size, color, and style) varies with the change of the Treasury signatures. The series is known for the ornate engraving on the reverse of the note.
Large-size silver certificates from the Series of 1899 forward have a blue Treasury seal and serial numbers.
Here are some pictures of some graded Silver Certificates:
Subscribe to:
Posts (Atom)