American Currency Exhibit: Metal Standards

<body bgcolor="#FFFFFF"> <table border="0"> <tr> <td colspan="2"><img src="title.gif" width="600" height="47"></td> </tr> <tr align="LEFT" valign="TOP"> <td rowspan="4" align="left" width=100 height=78> <p><img src="icon2.gif" width="110" height="74" border="0"></p> </td> <td align="left" height=20><a href="#text1"><img src="label1a.gif" width=385 border="0" name="label1" height="20"></a></td> </tr> <tr> <td align="left" height=20><a href="#text2"><img src="label2a.gif" width="385" height="20" border="0" name="label2"></a></td> </tr> <tr> <td align="left" height=20><a href="#text3"><img src="label3a.gif" width="385" height="20" name="label3" border="0"></a></td> </tr> <tr> <td align="left" valign="top"> <hr> </td> </tr> <tr align="left" valign="top"> <td align="left" width=100 height=78><br> <img src="../images/tarws.gif" width="144" height="44" align="middle" border="0" usemap="#eras"> <p><a href="show.html" target="_top"><img src="../images/tshow.gif" width="144" height="44" border="0" align="middle"></a> <p><a href="history/index.html" target="_top"><img src="../images/thist.gif" width="144" height="44" border="0" align="middle"></a> <p> <a href="../iconography/index.html" target="_top"><img src="../images/ticon.gif" width="144" height="44" border="0" align="middle"></a> <p> <a href="../index.html" target="_top"><img src="../images/thome.gif" width="144" height="44" border="0" align="middle"></a> <map name="eras"> <area shape="rect" coords="27,9,52,42" href="../stability/index.html" alt="National Stability" target="_top"> <area shape="rect" coords="1,9,25,41" href="../industrial/index.html" alt="Industrial Revolution" target="_top"> </map> </td> <td align="left" valign="top"> <h4><a name="text1">National Gold Bank &Treasury Coin Notes:</a><br> Gold and Silver as a Common Standard</h4> <ul> <li><a href="national/index.html" target="_top">National Gold Bank Notes</a></li> <li> <a href="treasury/index.html" target="_top">Treasury Coin Notes</a></li> </ul> <p>In the 1870s, Congress authorized nine banks in California to issue National Gold Bank notes which were redeemable in gold coin. These well-worn notes survive as tangible evidence of the rush for gold in California, when gold was the universal medium of exchange. Treasury Coin notes were issued in 1890 and 1891 with the passage of The Legal Tender Act of 1890.</p> <p>This special-interest legislation -- passed by Congress through the influence of the silver mining lobby -- authorized the issuance of coin notes in denominations ranging from $1 to $1,000 to purchase silver bullion at inflated prices. Their issuance virtually bankrupted the U.S. Treasury. In 1893, to avert a panic, President Cleveland repealed the Silver Purchasing Act.</p> <hr> <h4><a name="text2">Gold Certificates:</a><br> Building the Nation's Reserves</h4> <ul> <li><a href="goldcerts/index.html" target="_top">Gold Certificates</a></li> </ul> <p>During the tumultuous late-19th century, the U.S. government found it necessary to increase its reserves of precious metals. The Treasury offered certificates in exchange for deposits of gold and silver. The first Gold Certificates were issued in 1863. In 1933, the nation faced not only a severe economic depression, but also a banking crisis.</p> <p>The public began demanding gold; runs ensued on both Federal Reserve Banks and commercial banks. Soon, only Federal Reserve Banks were permitted to hold gold. In 1934, Federal Reserve Banks were required to turn over all gold coin, bullion, and certificates to the U.S. Treasury in exchange for a new type of Gold Certificate.</p> <hr> <h4><a name="text3">Silver Certificates:</a><br> The Last Metal Standard</h4> <ul> <li><a href="silvercerts/index.html" target="_top">Silver Certificates</a></li> </ul> <p>First issued in 1878, Silver Certificates were our nation's primary currency for many years. They were issued in denominations ranging from $1 to $1,000 and could be exchanged for silver at the U.S. Treasury. The last series of Silver Certificates was issued in 1957. When the price of silver began rising rapidly in the early 1960s, it became evident that those holding silver coins could profit greatly by selling them on the open market. This would have resulted in the disappearance of silver coins, with people hoarding the precious metal, as had happened during the Civil War. To avoid this crisis, Congress stopped redeeming Silver Certificates in 1968 and began exchanging them for Federal Reserve Notes at face value.</p> </td> </tr> <tr> <td align="center" width=100 height=78 valign="middle" colspan="2"><table width="700" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td><a href="/index.html"><img src="/images/navigation/url.gif" width="100" height="20" align="left" alt="frbsf.org" border="0"></a> <table border="0" cellspacing="0" cellpadding="0" width="600"> <tr bgcolor="#000000"> <td height="2" background="/images/navigation/pixel.gif"><img src="/images/navigation/pixel.gif" width="2" height="2"></td> </tr> <tr> <td align="center" width="600" nowrap class="toolbar"></td> </tr> <tr> <td align="center" width="600" nowrap class="toolbar"><a href="/index.html" class="toolbar">Home</a>  |  <a href="JavaScript:remoteStart()" class="toolbar">What's New</a>  |  <a href="/federalreserve/jobs/index.html" class="toolbar">Jobs</a>  |  <a href="JavaScript:startDef()" class="toolbar">Glossary</a>  |  <a href="/tools/faq.html" class="toolbar">FAQ</a>  |  <a href="/tools/feedback.html" class="toolbar">E-Mail Us</a>  |  <a href="/tools/index.html" class="toolbar">Site Map</a></td> </tr> <tr> <td align="center" width="600" nowrap class="toolbar"></td> </tr> <tr bgcolor="#000000"> <td height="2" background="/images/navigation/pixel.gif"><img src="/images/navigation/pixel.gif" width="2" height="2"></td> </tr> </table> </td> </tr> <tr valign="top" align="right"> <td><font face="Arial, Helvetica, sans-serif" size="1">Please review our <a href="/tools/legal/index.html">legal notices</a>, <a href="/tools/legal/index.html#disclaimer">disclaimer</a> and <a href="/tools/legal/privacy.html">privacy policy</a>.</font> </td> </tr> </table> </td> </tr> </table> </body>