Why Did the United States Need a $1,000 Bill?

Before electronic banking, large financial transactions could involve physically moving enormous amounts of currency. High-denomination notes made that much easier.

A bank transferring $100,000 using $1,000 bills needed only 100 pieces of paper. The same transaction using $20 bills would require 5,000 notes.

High-denomination currency therefore had a legitimate and practical role in banking and commerce. It was particularly useful for banks and large businesses at a time when transferring money electronically was either impossible or far less convenient than it is today.

Who Is on the $1,000 Bill?

The $1,000 Federal Reserve Notes most collectors encounter today are from the Series of 1928 and 1934 and feature President Grover Cleveland on the front.

Cleveland served two nonconsecutive terms as president, making him both the 22nd and 24th president of the United States.

There are also much earlier American $1,000 notes, including Legal Tender Notes, Gold Certificates, National Bank Notes and other types. Some of these are extremely rare and can be worth far more than the more familiar 20th-century Federal Reserve Notes.

When Did the United States Stop Printing $1,000 Bills?

The last high-denomination Federal Reserve Notes were printed in the 1940s. By that time, demand for them had already declined dramatically.

Banking technology was changing. Checks, wire transfers and increasingly sophisticated systems for moving money between financial institutions meant banks no longer needed to physically transport large quantities of high-denomination currency.

On July 14, 1969, during the Nixon administration, the U.S. Treasury and Federal Reserve announced that Federal Reserve Notes in denominations of $500, $1,000, $5,000 and $10,000 would no longer be issued.

The official explanation was largely practical: there simply was not enough legitimate demand for them anymore.

What About Organized Crime and Money Laundering?

There is another obvious problem with very large bills: they make it much easier to conceal and transport large amounts of cash.

One million dollars in $100 bills is a substantial physical package. The same amount in $1,000 bills would be only one-tenth as many notes.

For that reason, law-enforcement and Treasury officials have repeatedly raised concerns about high-denomination currency being useful for money laundering, drug trafficking, organized crime and other illegal transactions.

This became especially obvious decades later in Europe. The European Central Bank eventually stopped producing the €500 note after concerns that the denomination could facilitate illicit activity. The same basic argument applies to very large U.S. bills: modern banking eliminated much of their legitimate usefulness while their usefulness for moving untraceable cash remained.

Could the United States Make a New $1,000 Bill?

Surprisingly, the $1,000 denomination was not simply outlawed or erased from federal law.

The government retains legal authority involving high-denomination Federal Reserve Notes. In testimony before Congress, the Federal Reserve has noted that the Treasury Secretary retains authority to have denominations including $500, $1,000, $5,000 and $10,000 printed, while the Federal Reserve retains authority to issue them.

In practical terms, however, there is little reason to expect a new $1,000 bill. Electronic transfers have eliminated most legitimate demand for such a denomination, while concerns about money laundering and illicit cash provide an additional reason not to bring it back.

Are Old $1,000 Bills Still Legal Tender?

Yes. Genuine United States $1,000 bills remain legal tender at their face value.

That does not mean you should spend one.

Surviving $1,000 bills generally have substantial collector value, and exchanging one for only $1,000 would usually mean giving up that additional value.

A bank may technically accept one for deposit, but anyone who finds a $1,000 bill should have it evaluated by a knowledgeable currency dealer before doing anything with it.

How Much Is a $1,000 Bill Worth Today?

There is no single value for every $1,000 bill, but genuine examples are worth more than their $1,000 face value to collectors and coin dealers.

Value depends on several factors, including the series, issuing Federal Reserve district, condition, rarity, serial number and whether the note has any unusual characteristics.

Even among the relatively familiar 1928 and 1934 Grover Cleveland notes, collector values can vary substantially. Earlier and scarcer types can reach much higher levels.

Condition is particularly important with collectible paper money. A note that has been folded, stained, torn, repaired or otherwise damaged can be worth considerably less than a crisp example of the same type.

Where Do $1,000 Bills Turn Up Today?

Most $1,000 bills disappeared from everyday circulation many decades ago, but they still occasionally surface.

They are often found in estates, old family collections, safe-deposit boxes, envelopes, bank records and collections assembled by previous generations.

Some people who saved them never considered themselves currency collectors. A $1,000 bill was simply a convenient way to store a significant amount of money in a very small space.

That is one reason surviving examples sometimes appear unexpectedly when families begin sorting through an estate.

Found a $1,000 Bill? Don’t Deposit It Before Having It Checked

If you inherit or discover an old $1,000 bill, avoid spending it or depositing it at a bank.

The bank will be concerned with its $1,000 face value. A collector or professional currency dealer will be concerned with its numismatic value. Those will be very different numbers.

Oakton Coins & Collectibles in Skokie evaluates collectible U.S. paper money, including large-denomination notes, National Bank Notes, Gold Certificates, Silver Certificates and other obsolete or unusual currency.

We offer free verbal evaluations and can help determine exactly what type of note you have, its condition and whether it carries value above face.

If you have inherited a $1,000 bill or other old American currency, bring it in before taking it to the bank. Sometimes the most interesting pieces of American financial history are still hiding in an envelope, drawer or safe-deposit box.