The history of the Silver Certificates dates back to the period between 1878 to 1964. During this period, its Certificates were considered as US currency. Before this period, these certificates could be redeemed for silver spot price or the face value of the certificates in silver coins, the equivalent in silver bullion.
Silver Certificate has several characteristics that define the difference between a silver certificate and a Federal Reserve Note.
The first is the small print on the bill. This small print defines the amount of silver at the US Treasury that should be paid to the owner of the certificate. This amount is considered as the face value of the Silver Certificate.
Another distinguishing feature is the serial number, number value, and seal of the silver certificate. Initially, these were printed in blue, brown and red but the color combination was changed to just blue in 1899. The only exception was of the 1935a series of certificates which were printed during World War II.
The years of 1940s and 1950s saw decline in the number of its Certificates in circulation. As the certificates were redeemed for silver coins or bullion, they were shredded. They were reprinted only if there was enough silver in the treasury to back them. By the 1960s, the US government noticed that the prices on silver, which was used for making the coins, were more than the face value of coins. It also realized that the exchange is not making financial benefits for the government. And so, in 1964, the US government stopped the process of exchanging Certificates for silver dollars but redemption for bullion continued for some other four years. In 1968 the government ended the silver exchange totally. The Certificates of silver holders could exchange them for Federal Reserve Notes only which are considered legal tender till date. During 1970s, remaining silver dollars in the US treasury were sold to the public at collector values.