In the vast landscape of U.S. currency, you might have asked yourself: Is there a $500 bill? The answer is yes, but you will unlikely find one in your laundry. The $500 was officially discontinued by the U.S. Congress in 1969, although the Bureau of Engraving and Printing (BEP) has not printed one since 1945. While it is still a legal tender, a $500 bill could be worth much more than its face value. Today, they are mainly in the collections of numismatists or investors.
Birth and Progression of the $500 Bill
A $500 bill debuted in America in the late 18th century when North Carolina and Virginia first printed $500 notes. There were multiple designs throughout the 1800s, with numerous portraits used throughout the years. People such as John Quincy Adams, Joseph Mansfield, Charles Sumner, and Abraham Lincoln were featured on these early $500 notes.
One of the most famous designs on the $500 was printed in 1918. This “Blue Seal” note featured John Marshall on the front and the artwork “Hernando DeSoto Discovering the Mississippi in 1541” on the back.
The most common $500 bills found today were printed beginning in 1928 and feature President William McKinley. These $500 notes are worth many times more than the actual face value, with their overall worth dependent on their condition.
Why Is There a $500 Bill?
The $500 bill and its counterparts, like the $1,000, $5,000, and $10,000 bills, were designed for something other than everyday transactions. Instead, these high-denomination notes were primarily used for official transactions between Federal Reserve banks. During the early 20th century, when electronic transactions were not yet available, these bills facilitated the movement of significant sums of money between financial institutions.
These notes were essential tools for banks to settle balances with one another. They weren’t meant for the average citizen to carry in their wallets or use for daily purchases. The intricate designs and substantial denominations were a testament to their unique role in the financial system. While the $500 is considered the smallest “large denomination” bill, the largest one is a $100,000 gold certificate featuring the portrait of Woodrow Wilson.
The Demise of High-Denomination Currency
The era of high-denomination currency was relatively short-lived. In 1945, as World War II ended, the United States began reassessing its currency system. Concerns arose regarding the potential misuse of these high-value bills in illegal activities such as money laundering, tax evasion, and organized crime transactions. Therefore, the BEP stopped printing the larger denomination bills. The Federal Reserve System officially discontinued high-denomination bills such as the $500 note in 1969, citing a “lack of use.”
Are $500 Bills Legal Tender?
While the $500 bill is no longer in circulation, it is crucial to note that it remains a legal tender. This means that you could use a $500 bill to settle a debt or make a payment. However, the reality is that these bills are exceptionally rare and are worth much more than their face value.
Collectors are drawn to high-denomination bills for their monetary value, historical significance, and intricate designs. The portraits, engravings, and artistic elements on these bills tell a story of the time they were created.
Legacy of the $500 Bill
The $500 bill serves as a collectible item from a different era in American currency. Its story encompasses a time when large-size notes were integral to the functioning of the financial system. As the world transitioned and evolved with new technology, these high-denomination bills became obsolete. Large transactions no longer require paper money and can be performed easily in the digital era. Therefore, the legacy of the $500 bill lives on in the hands of collectors and enthusiasts.
