These notes are from the era when your money was Backed by Gold and Silver! Look closely at the bottom of the note: "One Dollar in Silver Payable to the Bearer on Demand". Millions upon millions of these notes were turned-in in the 1960's and SHREDDED when the US Government set a deadline for them to be redeemed for silver.
In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of Silver Certificates for Silver Dollars.
Up until June 24, 1968, you could exchange silver certificates for
.77344 ounces of pure silver (the amount of silver contained in a
silver dollar). However, since that date has long since passed, they
have no official value outside their stated face value. Except to
collectors, of course.
In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. Silver Certificates were abolished by Congress on June 4, 1963 and all redemption in silver ceased on June 24, 1968. Paper currency is still valid legal tender without the Silver Certificate, instead being backed simply by the strength of the U.S. economy. According to the U.S. treasury, "The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
I recently went on a tour at the Federal Reserve Bank. They said every Silver Certificate they find, they shred them. This means there are becoming fewer and fewer of these silver certificates.
Always keep in eye out when you get cash back. These are very rare. You will notice that on these bills, they do not have a green seal, but a blue seal.
As you can see from the picture, this is not only a silver certificate, but a Star Note as well.
Read my review all about Star Notes!
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