Silver Backed US Dollar - 1935 - This US Treasury Note is better known as Silver-Backed Dollar, redeemable for silver coins and granules until June 1968. . Even after the confiscation of silver bullion (Executive Order 6814 - August 9, 1934), silver-backed dollars could be used to redeem for silver coins . In essence, the silver certificate was issued as a placeholder (derivative) for the very silver that backed it. This was considered to be a more user-friendly way to carry the precious metal.