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Numismatics is a fascinating hobby for a lot of reasons. Currency, be it paper notes or coins, is a binding element that runs throughout history and that we interact with every day. Not only are many of these collectibles beautiful, but they also signify a time, place and economic and monetary realities long since passed but still familiar enough today to resonate in a personal way so many other pieces of history just can’t replicate.
A perfect example of this phenomenon is the vast array of denominations that were at one time available in the United States. Today, everyone is familiar with the $1, $5, $10, $20, $50 and $100 bill. Even the $2 bill, while somewhat fascinating, is common enough as to not be altogether strange. Same with the penny, nickel, dime and quarter.
But there were times in our history when valuations and economic instability were such that many different denominations of money were commonly produced and used.
Fractional Currency
The U.S. Civil War caused some instability in the country’s economy, and this included a weakening of the public’s faith in the value of currency issued by a federal government that no longer maintained control over all the states. One of the results of this uncertainty was the sudden shortage of gold and silver due to hoarding.
Hoarding may have been logical given the circumstance. Why trust paper currency backed by a government whose legitimacy and stability was in question?
This eventually led to the Treasury Department issuing temporary fractional paper currency. They created 3, 5, 10, 15, 25 and 50 cent fractional notes. This was the only period in United States history when paper notes were created worth less than $1.
These notes were still legal tender until 1876, at which time Congress legislated the minting of silver coins of equal denominations to replace the temporary fractional treasury notes.
Still Legal Tender, But Who Would Use It for That?
If you found a $500 bill with William McKinley’s face on it, you could still use it to buy goods today. The $500 bill hasn’t been in circulation since 1969, and at this point it’s safe to assume that you’ll only find one in collections, businesses like Bellevue Rare Coins, and museums. Even in moderately good condition, these notes can easily be worth double their face value or more to collectors.
So, while you could go down to the grocery store and use a legitimate $500 bill to buy a gallon of milk, it’d be pretty silly to do. And it’s unlikely the cashier would recognize it as legal tender anyways.
The same is true for the $1,000 bill featuring the first U.S. Secretary of the Treasury, Alexander Hamilton or President Grover Cleveland. The Treasury Department decided it would confuse people to have Hamilton on both the $10 and the $1,000 bill, which is why they switched to versions with President Cleveland. The Hamilton versions are rarer due to fewer printings, but both versions are worth well over their face value.
Like the $500, $1,000 and $5,000 bills, the $10,000 bill was also discontinued in 1969. It was one of four U.S. treasury notes to be adorned by the portrait of a non-president, Salmon P. Chase. Although not exactly a household name, Chase had quite the successful political career, serving terms as governor and senator of Ohio, treasury secretary under Abraham Lincoln and eventually a Justice of the Supreme Court.
The largest denomination of all was the $100,000 bill, printed for less than a month between December 18, 1934 and January 9, 1935. Adorned with President Woodrow Wilson, this bill wasn’t meant for public use, and was designed solely to transfer funds between Federal Reserve banks. The $100,000 note is one bill we won’t be able to help you find at Bellevue Rare Coins. Not because we don’t have exceptional connections through our network of collectors, but because it’s actually illegal for collectors to own a $100,000 note.
Find All Kinds of Rare Notes and Coins at Bellevue Rare Coins
Are you an avid numismatist or interested in learning more about the collection of US paper currency? Bellevue Rare Coins is an exceptional source for knowledge and collectible currency in the Seattle area. Whether you just want to talk to the experts, browse what we have in stock or make a purchase, we encourage you to visit one of our five convenient locations the Puget Sound!