N002

US Note

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Identifier:

N002- US Silver Certificate $1

Type:

Note

Date:

1935

Dimensions:

15.6 cm L
6.6 cm W

Description:

US money leading up to modern times was considered a bimetal currency, meaning that it was based on both gold and silver values. The Fourth Coinage Act of 1873 was passed to force America towards a straight gold standard, resulting in demonetized silver. This upset many citizens, especially those in states with significant silver mines: this panic is referred to as "silver agitation." A compromise was reached in 1878 through the the Bland-Allison Act, which required the US Treasury to purchase a minimum amount of silver and put it into circulation through Silver Certificates. The original Certificates ranged from denominations of $10 up to $1,000. Silver certificates of low-denomination (i.e. $1, $2, and $5) were authorized in early August of the year 1882.
There was a redesign in 1929 which featured a reduction in size, and another later in 1934 where the wording on the bottom of the note changed from "ONE SILVER DOLLAR payable to the bearer on demand" to "ONE DOLLAR in silver payable to the bearer on demand". This change meant the Treasury was no longer obligated to store bags of silver dollars in its vault and instead allowed them to redeem these certificates with silver bullion or granules.
New Deal

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