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All silver certificates (not just $1 bills) were discontinued when increasing demand for silver forced the US to deregulate the metal's price.

Each silver certificate represented an equal value of silver metal held by the Treasury, either in the form of coins or bullion. Silver could be used as a standard of value because the Treasury held its price constant at the now-tiny price of $1.29 per troy ounce. For example, each half dollar contained 0.36 oz of silver. Because the price of silver never changed, the half dollar's value as metal was always tied to its denomination. Similarly, a $5 silver certificate represented $5 worth of silver held by the Treasury and in fact the bill could be exchanged for that amount of metal.

However when the price of silver was deregulated in the early 1960s it rose far above $1.29/oz. Speculators would "game" the connection between silver certificates and silver metal by trading the bills for metal, waiting for the price to change, selling the metal, getting their profit paid in silver certificates, trading again, waiting again, and so on.

To prevent economic chaos the government ended the connection between silver metal and money, both coins and bills. To prevent people from melting coins and selling them for far more than their face value, the government changed their composition to the current copper-nickel "sandwich" coins we use today. Similarly, the Treasury stopped redeeming silver certificates for metal and ended the requirement that they be backed dollar for dollar. That action meant silver certificates were no different economically from Federal Reserve Notes, so there was no longer any need to print two separate types of currency.

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Q: Why were silver certificate dollar bills discontinued?
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Related questions

Why are they called silver certificate dollar bills?

The US Treasury would exchange them for silver coins. That policy ended in the mid-1960s when silver coinage was discontinued.


What is the value of a 1965 US 1 dollar silver certificate?

The last silver certificates were dated 1957 and there are no US bills dated 1965. By 1965 the U.S. had stopped making coins from silver and discontinued the policy of redeeming silver certificates for metal.


What is the value of a 1962 US 1 dollar silver certificate?

The US didn't print any bills dated 1962, and silver certificates were discontinued with the 1957 series. Please check again and post a new question.


Is there a 20 dollar silver certificate?

Yes, but a long time ago. $20 silver certificates were made from 1878 to 1891. After that they were discontinued in favor of other types of bills, including National Currency and the familiar Federal Reserve Notes.


What is the value of a 1956 one dollar silver certificate?

The U.S. did not print any bills dated 1956.


What is the value of silver certificate dollar bills?

It depends greatly on the year and condition. But all of them are worth at least a dollar or so over face.


What is the value of a 1930 US 1 dollar silver certificate?

The U.S. didn't print any silver certificate bills dated 1930. Please check again and post a new question.


Can you take a silver certificate to an bank and trade it or a real silver coin?

No, The law was changed in 1968 and these bills can not be changed for silver. They are still worth the dollar value though


What is the value of a 1957 US 2 dollar or 5 dollar silver certificate?

Please check your bills again and post a new, separate question for each one. > The only bills dated 1957 are $1 bills. > The last $5 silver certificates are from 1953. > The last $2 silver certificates are from 1899.


What is the value of a 1956 US 5 dollar silver certificate?

The U.S. didn't print any bills dated 1956.


When were silver certificates marketed?

Silver certificate (and all other bills, for that matter) are circulated rather than marketed. "Marketing" means to put up for sale.Silver certificates were introduced in 1878. They were backed dollar-for-dollar by an equivalent amount of silver on deposit with the Treasury. They were discontinued in the early 1960s when the price of silver had to be deregulated, which meant there was no longer any way to keep a fixed link between the bills' values and silver metal's value.Silver certificates were never withdrawn or demonetized. The Treasury simply stopped redeeming them for silver. The bills gradually disappeared from circulation as they wore out or people saved them as keepsakes.


How rare are 2 star note silver certificate dollar bills with consecutive serial numbers?

not rare at all they are counterfeit broski