Silver Certificates

The Coinage Act of 1873 placed the U.S. on the gold standard.  Previously  the United States had been on a gold and silver bimetallic standard, created by Alexander Hamilton.  The Coinage Act discontinued coinage of the U.S. silver dollar.  This caused the world market price of silver to fall drastically.  Demand decreased as the U. S. demonetization of silver combined with a shift in European countries from a silver to a gold standard.  Supply increased as large silver deposits were discovered in the American West.  Silver mining companies suffered with no orders coming from U.S. mints.  Many citizens saw this as a "crime," and silver agitation began.  As a reaction to this,  the Bland-Allison Act was passed by Congress on February 28, 1878.  The bill restored the standard silver dollar's full legal tender status.  It required the United States Treasury to purchase (at market price) between $2 million and $4 million of silver bullion monthly from the Western miners.   Silver Certificates came about because silver coins are quite heavy and an easier medium of trade was needed. The government decided to apply their gold certificate strategy to the silver. The idea was that when demand called for it,  Silver Certificate were printed against the silver dollars held in the Treasury to provide an easier medium of exchange. The idea was kept, and Silver Certificate Series 1878 was printed in denominations of $10 to $1000.