How Many 1000 Dollar Bills Are in Circulation?

The United States monetary system primarily features denominations from $1 to $100. However, the U.S. government once issued currency with much higher face values. These larger bills are a significant part of American monetary history.

The History of High-Denomination US Currency

High-denomination banknotes have been part of the United States currency system since the late 18th century, with some states issuing $500 and $1,000 notes during the Revolutionary War. Federal issuance began in 1861, with denominations including $500, $1,000, and $5,000 notes. By 1918, the Federal Reserve Board began issuing $500, $1,000, $5,000, and $10,000 denominations.

These large bills were primarily intended for significant financial transactions between banks or by the federal government, rather than for general public use. For example, a $100,000 gold certificate, printed from 1934 to 1935, was exclusively used for transactions between Federal Reserve Banks. Throughout their history, various series and designs of these high-denomination notes were produced, often featuring portraits of historical figures such as William McKinley on the $500 bill, Grover Cleveland on the $1,000 bill, James Madison on the $5,000 bill, and Salmon P. Chase on the $10,000 bill.

Current Legal Status and Circulation

High-denomination bills, including the $1,000 note, remain legal tender in the United States. The U.S. government stopped printing all bills above $100 on December 27, 1945.

The Federal Reserve System began withdrawing these notes from circulation on July 14, 1969, due to a “lack of use.” Whenever banks receive these high-denomination bills, they are required to send them to the Treasury for destruction. Consequently, the number of such bills actively circulating among the general public is extremely low. Most remaining high-denomination notes are held by collectors, museums, or financial institutions as part of their numismatic collections. As of May 30, 2009, approximately 165,372 $1,000 bills were known to exist.

Why High-Denomination Bills Were Discontinued

A primary reason for discontinuing high-denomination bills was to combat illicit financial activities such as organized crime, money laundering, and drug trafficking. Large bills made it easier for criminals to move significant sums of untraceable cash, posing a challenge for law enforcement.

The anonymity and ease of transport offered by large banknotes made them a preferred instrument for illegal activities. The rise of electronic transactions and checks also contributed to their obsolescence. Modern financial systems allow for large sums of money to be transferred efficiently and securely without physical cash, reducing the legitimate demand for high-denomination currency.

The Value of High-Denomination Bills Today

While high-denomination bills are still legal tender at their face value, their collector’s value, known as numismatic value, far exceeds this amount. Their rarity and historical significance contribute significantly to their worth in the collector’s market. For instance, a $1,000 bill in excellent condition might sell for much more than its face value.

Factors influencing their numismatic value include the bill’s condition, its series, and any unique features like low serial numbers. A bill in pristine, uncirculated condition will command a higher price than one with significant wear. Individuals who come into possession of a high-denomination bill are often advised to have it appraised by a reputable currency expert to determine its true market value, as spending it at face value would result in a substantial financial loss.