$1000 bills

[captainQwark]

when were $1000 taken out of circulation?

[x-ray_vision]

The following notes were discontinued in 1969:
$500 - William McKinley
$1000 - Grover Cleveland
$5000 - James Madison
$10,000 - Salmon P. Chase

[World_Eater]

I wonder what they fetch on the market nowadays.

[UncleBill]

Cite for the above.

On July 14, 1969, David M. Kennedy, the 60th Secretary of the Treasury, and officials at the Federal Reserve Board announced that they would immediately stop distributing currency in denominations of $500, $1,000, $5,000 and $10,000. Production of these denominations stopped during World War II. Their main purpose was for bank transfer payments. With the arrival of more secure transfer technologies, however, they were no longer needed for that purpose. While these notes are legal tender and may still be found in circulation today, the Federal Reserve Banks remove them from circulation and destroy them as they are received.

(bolding mine)

[samclem]

. Production of these denominations stopped during World War II.

I’m going from memory, but Ithink they still printed the $500 and $1000 until 1948.

The quoted article by Treas. Sec. Kennedy, again, from memory, is crap. They took them out of circulation to make it harder for drug dealers, etc. to do biz. Plain and simple.

As to value, we bought some really ratty $1000’s today. Paid $1050 and $1100 for them. Decent ones we pay $1200-1300. New condition, which you seldom see, probably we pay $1600-2000.

$500 notes, we pay $550-600 for ratty, $600-675 for nice.

[clayton_e]

samclem, who are you with? What group is “we” who buys old bills?

[Northern_Piper]

In his profile, samclem lists his occupation as “Numismatics”. From previous posts, I believe he operates a coin store.

[Achernar]

*Originally posted by samclem *
The quoted article by Treas. Sec. Kennedy, again, from memory, is crap. They took them out of circulation to make it harder for drug dealers, etc. to do biz. Plain and simple.

I’m not demanding a cite, but I would like to know where you get your information.

[UncleBill]

For what it’s worth, the quoted article was taken from the U.S. Treasury website FAQ Section, not some geocities site. That being said, the gubmint COULD be lying.

[zev_steinhardt]

*Originally posted by World Eater *
**I wonder what they fetch on the market nowadays. **

You can regularly find $500 and $1000 bills on Ebay. Alas, never for less than $500 or $1000…

Zev Steinhardt

[Skammer]

I thought they printed them in order to pay Ray Ramano.

[bdgr]

I saw one once. I was at a 7-11 at about 2 in the morning talking to a friend of mine who worked there. A powder blue edsel pulls into the parking log, a really geeky guy gets out of the car, walks in, and starts walking through store talking to himself saying "I think get some of the damn patato chips…a damn hotdog…"etc. He brings eveything up front, says can you break this? my friend behind the counters eyes get wide, and he says “no, I cant”. I look over and its a 1000 bill. The guy starts laughing, puts it up and hands him a 20. It looked to be in excellant condition. The guy said he was a collector. A very surreal thing to see at a Texas 7-11 in the middle of the night.

**
A hundred dollar Franklin is really sweet
A five hundred McKinley is the one for me
If I get a Cleveland, I’m really set
A thousand dollar Cleveland is hard to get

Them dead presidents
Them dead presidents
Well I ain’t broke but I’m badly bent
Everybody loves them dead presidents

**
from deadpresidents, by Willie Dixon

[drhess]

who was Salmon Chase?

Regarding smaller bills making money harder to handle for illegal trade, the new 500 Euro note is not printed yet, but is banned in Portugal (according to AP article on the new US $20 note), and perhaps may not be printed for the crime use angel.

[handy]

“I thought they printed them in order to pay Ray Ramano.”

You must be talking about the new $1M bills. He would get two per week.

[DiLLiGaF]

[QUOTE]
*Originally posted by bdgr *
I look over and its a 1000 bill. The guy starts laughing, puts it up and hands him a 20. It looked to be in excellant condition. The guy said he was a collector. A very surreal thing to see at a Texas 7-11 in the middle of the night.
I am thinking that if he were to flash a $1000 bill at a 7-11 in Kansas City at 2 am he would go from laughing to crying pretty quick. Then he would wonder what the hell he was thinking flashing that kind of cash (the cash he used to have).

[bdgr]

[QUOTE]
*Originally posted by DiLLiGaF *
**

*Originally posted by bdgr *
I look over and its a 1000 bill. The guy starts laughing, puts it up and hands him a 20. It looked to be in excellant condition. The guy said he was a collector. A very surreal thing to see at a Texas 7-11 in the middle of the night.
I am thinking that if he were to flash a $1000 bill at a 7-11 in Kansas City at 2 am he would go from laughing to crying pretty quick. Then he would wonder what the hell he was thinking flashing that kind of cash (the cash he used to have). **

Yeah, most places in fort worth as well. That part of what was so freaky about it.

[J_String]

who was Salmon Chase?

Lincoln’s treasury secretary, IIRC.

[Hail_Ants]

I was interested in high denomination bills for a while and used to check the eBay auctions.

$1000 dollar bills went for a minimum of $1200-1300 for ones in only fair condition. Most were GEM CU (near perfect) and went for $1600-1800.

I saw a $5000 bill in mint condition go for over $30K.

And not too long ago there were a couple $10,000 bills up for auction and the bidding was at $100K and the reserve wasn’t even met! These ten grand bills were from that “Get your picture taken in front of $1,000,000” display in Las Vegas. The casino owners have dismantled it.

[friedo]

*Originally posted by J String *
**Lincoln’s treasury secretary, IIRC. **

And also a Chief Justice to boot.

Short Salmon Chase bio.

My favorite part:

As secretary of the treasury, Chase presided over the complex and difficult task of financing the war; he was instrumental in establishing the national banking system in 1863. But his more radical antislavery views, as well as political ambition, put him at odds with the more moderate Lincoln. Eventually, in 1864, Lincoln accepted Chase’s resignation because, as Lincoln said, they had reached a point of “mutual embarrassment” in their official relations. Nevertheless, when Supreme Court Chief Justice Roger Taney died in October of that year, Lincoln appointed Chase to the position. It was he who administered the presidential oath to Andrew Johnson following Lincoln’s assassination.

[samclem]

Achernar. I’ll try to find you a cite about my assertion that they removed $500’s and $1000’s to foil drug dealers(and money launderer’s, and bootleggers). I won’t dispute that $5000 and $10,000 notes may have been used mostly in bank to bank transactions, but I strongly suspect that they were removed for the same reasons I list above.

I work for Hartville Coin, which has been a coin shop in Northern Ohio since the late 50’s or so. That’s a long time in the coin biz. We do 10 million a year or so. I’ve done coins for a living since 1971 or so. I sometimes post things which I’ve always assumed were true, and later found out that I was wrong. Most of the time I give you pretty good info. I consider myself a cut above the average “coin dealer.” I’m a numismatist. At one time I had a coin library of 100-200 ft. I still have it, but packed away.

The increase of the prices of $500/$1000 banknotes is probably attributable to tv “shopping” networks. They sell coins, etc for twice what we do in our coin shop. They are big consumers of coins/banknotes. They are our largest customer.