The Handbook of Public Water
Supplies prepared by the
American Water Works
Association, Inc. (Third
Edition, 1971) has a 
few paragraphs on
disinfection by metal
ions. It includes a few
remarks on its history.

According to this 
handbook, the oligodynamic
properties of silver were
described by Raulin
in 1869 in his article
The Chemistry
Of Vegetation, Sci. Nat.,
11:93 (1869).

In 1893 the Swiss
botanist Nageli
observed the
disappearance of
Spirogyrae from waters
containing minute
quantities of finely
divided silver
precipitated from
one of its salts.

The AWWA Handbook
mentions that
M.N. Baker's book,
The Quest For Pure Water
(Lancaster Press, 1948)
indicates that the first
paper in English on the
use of silver for water
disinfection was 
published in 1932 in
England. Baker writes
that  four papers on the
subject were published
in the United States
between 1934 and 1936,
one originating in Russia
and the other in Poland.
The latter deal with
experiments with
"filters containing metallic
silver, with solutions of
silver salts and with
electrocatynization
whereby finely divided
silver was produced by
an electrolytic system."