1957B $1 Silver Certificate

Description

Silver Certificates were originally issued for the redemption of silver on demand, authorized by two Acts of Congress in 1878 and 1886, and available in denominations ranging from $1 to $1,000. Over time, these notes underwent several changes in design, size, and legal tender obligations, which were printed on the front of the notes.
The Series 1957 $1 Silver Certificate included the statement: “This certifies that there is on deposit in the Treasury of the United States of America [one dollar] in silver payable to the bearer on demand… This certificate is legal tender for all debts public and private.” At the time, holders of these notes could exchange them at banks for silver coins equal to their face value. In the late 1950s and early 1960s, this often meant trading a Series 1957 $1 Silver Certificate for a Morgan Dollar or Peace Dollar, which were still available at face value.
By 1963, rising silver prices caused 90% silver coins such as Dimes, Quarters, Half Dollars, and Dollars to become more valuable for their silver content than their face value. As a result, widespread hoarding of silver coins created a nationwide coin shortage.
To address the situation, Congress abolished Silver Certificate production on June 4, 1963. Later, on June 24, 1968, Congress ended the redemption of Silver Certificates for silver bullion. While no longer exchangeable for silver, Silver Certificates remain legal tender and can still be used to obtain Federal Reserve Notes at their face value.