Large denominations of United States currency

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Large denominations of United States currency greater than $100 were circulated by the United States Treasury until 1969. Since then, U.S. dollar banknotes have only been issued in seven denominations: $1, $2, $5, $10, $20, $50, and $100.

Video Large denominations of United States currency

Overview and history

Large-denomination currency (i.e., banknotes with a face value of $500 or higher) had been used in the United States since the late 18th century. The first $500 note was issued by the Province of North Carolina, authorized by legislation dated May 10, 1780. Virginia quickly followed suit and authorized the printing of $500 and $1,000 notes on October 16, 1780 and $2,000 notes on May 7, 1781. High-denomination treasury notes were issued, for example during the War of 1812 ($1,000 notes authorized by an act dated June 30, 1812). During the American Civil War Confederate currency included $500 and $1,000 notes. During the Federal banknote issuing period (1861 to present), the earliest high-denomination notes included three-year Interest-bearing notes of $500, $1,000, and $5,000, authorized by Congress on July 17, 1861. In total, 11 different types of U.S. currency were issued in high-denomination notes across nearly 20 different series dates. The obverse of United States banknotes generally depict either historical figures, allegorical figures symbolizing significant concepts (e.g., liberty, justice), or a combination of both. The reverse designs range from abstract scroll-work with ornate denomination identifiers to reproductions of historical art works.

Maps Large denominations of United States currency

Public versus institutional use

Series 1934 gold certificates ($100, $1,000, $10,000 and $100,000) were issued after the gold standard was repealed and gold was compulsorily confiscated by order of President Franklin Roosevelt on March 9, 1933 (see United States Executive Order 6102). Thus the series 1934 notes were used only for intragovernmental (i.e., Federal Reserve Bank) transactions and were not issued to the public. This series was discontinued in 1940. The series 1928 gold certificate reverse was printed in black and green. See history of the United States dollar.

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Passive retirement

Although they are still technically legal tender in the United States, high-denomination bills were last printed on December 27, 1945, and officially discontinued on July 14, 1969, by the Federal Reserve System, due to 'lack of use'. The $5,000 and $10,000 effectively disappeared well before then.

The Federal Reserve began taking high-denomination currency out of circulation (destroying large bills received by banks) in 1969. As of May 30, 2009, only 336 $10,000 bills were known to exist; 342 remaining $5,000 bills; and 165,372 remaining $1,000 bills. Due to their rarity, collectors often pay considerably more than the face value of the bills to acquire them. Some are in museums in other parts of the world.

For the most part, these bills were used by banks and the Federal government for large financial transactions. This was especially true for gold certificates from 1865 to 1934. However, for the most part, the introduction of an electronic money system has made large-scale cash transactions obsolete. When combined with concerns about counterfeiting and the use of cash in unlawful activities such as the illegal drug trade and money laundering, it is unlikely that the U.S. government will re-issue large denomination currency in the near future, despite the amount of inflation that has occurred since 1969 (a $100 bill is now worth less, in real terms, than a $20 bill was worth in 1969). According to the U.S. Department of Treasury website, "The present denominations of our currency in production are $1, $2, $5, $10, $20, $50 and $100. The purpose of the United States currency system is to serve the needs of the public and these denominations meet that goal. Neither the Department of the Treasury nor the Federal Reserve System has any plans to change the denominations in use today."

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In popular culture

Before they were 'retired', host Monty Hall regularly tempted or teased contestants on Let's Make a Deal with a $1,000 bill featuring Grover Cleveland.

Ridiculously high denomination bills are sometimes used in fiction, for example the trillion dollar bill possessed by Montgomery Burns in The Simpsons.

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High-denomination banknote issuing data

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High-denomination United States banknotes

The National Numismatic Collection at the Smithsonian Institution contains (among other things) the Bureau of Engraving and Printing (BEP) certified proofs and the Treasury Department collection of United States currency. Using a combination of proofs and issued notes, a nearly complete type set of high-denomination currency was compiled. Notably missing are several types of Compound and Interest Bearing Notes. Printed during the early to mid-1860s on very thin paper, these high-denomination notes are virtually non-existent. Their issuance (1861-65) pre-dates the BEP's responsibility for U.S. Currency (1870s), so it is fortunate that any proofs exist in the current archives.

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See also

• Currency of the United States
• Gold certificate
• Fake denominations
• Silver certificate (United States)
• Silver standard
• Treasury Note (1890-91)

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References

Footnotes

Notes

Bibliography

• Fricke, Pierre (2014). Collecting Confederate Paper Money. Pierre Fricke. ISBN 978-0-9844534-9-8. 
• Friedberg, Arthur L.; Friedberg, Ira S. (2013). Paper Money of the United States: A Complete Illustrated Guide With Valuations (20th ed.). Coin & Currency Institute. ISBN 978-0-87184-520-7. Retrieved 14 February 2014. 
• Hessler, Gene (1993). The Engraver's Line - An Encyclopedia of Paper Money & Postage Stamp Art. BNR Press. ISBN 0-931960-36-3. 
• Hessler, Gene (2004). U.S. Essay, Proof and Specimen Notes (2 ed.). BNR Press. ISBN 0-931960-62-2. 
• Huntoon, Peter W. (1995). United States Large Size National Bank Notes. Society of Paper Money Collectors, Inc. ISBN 0-9648774-1-4. 
• Newman, Eric P. (2008). The Early Paper Money of America (5 ed.). Krause Publications. ISBN 0-89689-326-X. 
• Schwartz, John; Lindquist, Scott (2011). Standard Guide to Small-Size U.S. Paper Money - 1928 to Date. Krause Publications. ISBN 978-1-4402-1703-6. Retrieved 14 February 2014. 

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External links

• Media related to Money of the United States by denomination at Wikimedia Commons
• Large Denominations from the Bureau of Engraving and Printing
• U.S. Department of the Treasury

Source of article : Wikipedia