US $ 1,000 bill

The United States monetary system has gone through many changes over the years, especially in the matter of paper money. These changes to banknotes are not made for no reason, but respond to certain key market needs. One of them is to overcome the sophisticated counterfeiting methods used by organized crime, by thieves and by those groups that are dedicated to laundering dollars. The $ 1,000 bill is not exempt from these changes.

Of course, there are other reasons behind these changes, such as the lack of demand from citizens – or from the countries of the world that use dollars interchangeably – and rising costs of issuing paper money. Due to these changes, history is full of different denominations of paper money, some of which have become – practically – the protagonists of a myth. An example? The 1000 dollar bill.

If your jaw dropped because you thought this banknote never really existed, we understand! However, the truth is that the United States Treasury yes he printed the $ 1,000 bill, but it stopped broadcasting many years ago. Oddly enough, this does not mean that the $ 1,000 bill has lost its value.

Conclusion? We are not facing a piece of common paper: it could be said that it continues to have value and usefulness.

Is there a 1000 dollar bill?

Yes. Believe it or not, the US $ 1,000 bill is real and is still considered legal tender, although possibly no one dares to use it for its actual market value. However, the chances of you stumbling across one are very slim, at least if it happens accidentally.

To give you an idea, in 2009, there were only about 165,000 $ 1,000 bills on the market. Where are they? Well, most of them are in museums or in the hands of numismatics collectors.

1000 dollar bill

The history of the 1000 dollar bill

The United States government issued the first $ 1,000 bill in 1861. In that same year, this banknote was included among the first of the Confederate States of America. For that period, Montgomery was the capital of the Confederacy.

Although this format was predestined to be extremely valuable (at that time, a thousand dollars was a lot of money) war broke out. Result? Paper money issued by the Confederacy almost completely lost its value.

In fact, after the Civil War, many people destroyed and burned all these bills since they had no value. Of course, not all copies were lost: some families kept their $ 1,000 bills as a collector’s item or as a souvenir. This is precisely why there are so few $ 1,000 bills today.

As a curious fact, you should know that the first $ 1,000 bills were printed to help the state finance the revolutionary war. At least that’s what Matthew Batman, one of the assistant curators of the American Numismatic Society, said. (This is an organization that studies the coins and banknotes of the United States)

The $ 1,000 bills were issued by the Continental Congress representing the 13 colonies. At that time, these $ 1,000 bills they were used only in real estate businesses -this for its high value- and also to facilitate the transfer of money from one bank to another. In 1928, paper money was reformed to be issued in a more compact size (the current size).

Because of this, the printing of $ 1,000 bills was increased. In fact, millions of these tickets were printed.

Who is on the $ 1,000 bill?

There are actually two people stamped on the $ 1,000 bill: Alexander hamilton and the president Grover cleveland. No, this is not a shared portrait. There are two characters on these bills because there are two different formats of $ 1,000. Let’s get to know a little about them!

The $ 1,000 bill, 1918 series, Blue Seal Bill

The first $ 1,000 bill was printed and put into circulation in 1918. This is the format that has the face of Alexander hamilton on the front and an eagle on the back of it.

But why was Alexander Hamilton chosen for this ticket? In addition to having a Broadway musical about his life -which is not very relevant in financial matters, but it is a curious fact- Alexander Hamilton was the Founding Father who is credited with creating the United States financial system.

The $ 1,000 bill, 1928 series, Green Seal Bill

The second bill of 1000 dollars arrived only ten years later, that is, in the year 1928. This was – actually – a paper money project in which it was chosen to use the face of a different character. Which one? That of the president Grover cleveland.

Why Grover Cleveland? Well, he was the 22nd and 24th president of the United States. Did you notice what makes it special? If you didn’t, we tell you: this is the only president to have served two non-consecutive terms, at least so far.

An important point to remember is that these bills are from the Federal Reserve, that is to say, they are not certified for gold or silver.

Fun fact: This statement may impress you even more, but the truth is that these are not the first $ 1,000 bills that have been seen in the United States. As we said earlier, during the Civil War, Confederate currency also included a $ 1,000 bill. As they are not national banknotes, the US Treasury does not consider this format legal tender.

The million dollar question: how much is a $ 1,000 bill worth?

Are you interested in buying a $ 1,000 bill? From the outset we tell you that it will not be easy at all. Finding a $ 1,000 bill for sale is pretty rare, at least outside of the collector’s market. Why? Because most of the large denominations of U.S. currency fall into the category of paper money out of circulation.

Even if you find one at a garage sale, know that a $ 1,000 bill is worth much more than its face value indicates. Due to its rarity, one can normally be purchased for an amount in excess of $ 20,000.

This means that if you know of an older person with stacks of old bills hidden in the attic, you may want to help them go through each one. You may find an extremely rare banknote, like this one! If they did, they could be sitting on a gold mine.

As in any collector’s item, the value of a $ 1,000 bill will also depend on its current condition. The more preserved it is, the higher its price on the market. To help you determine the price ranges that you might find out there, we have decided to discuss here the categories that are used in the market for buying and selling paper money:

  • Very delicate: This rating is normally given to notes that have been in circulation for a long time, but still have their relatively sharp stamping. They may have some spots and creases.
  • Extremely fine: That is, those bills that have circulated, but for less time than the previous ones. This bill will show the sharpness of the original and will be as bright as one you see out there today. It will not have stains or discolorations, but it may show traces of some folds.
  • Uncirculated MS 63: Highest and most expensive collector rating. These are the banknotes that were not in circulation even once. They are practically new. They have no discolorations, watermarks, smudges, or creases.

Why are $ 1,000 bills no longer used?

Although they are still legal tender, high-denomination bills – like our $ 1,000 star – were discontinued in 1945. Then, in 1969, the Federal Reserve Bank officially discontinued them for “lack of use.”

Originally, the purpose of these high-denomination bills was to help banks and the federal government make large transactions. With the introduction of the electronic system for handling money, the use of high-denomination paper money -in conjunction with large bills- disappeared.. They are no longer needed.

With big counterfeiters out there – and with the latent possibility that criminal organizations can take advantage of this high-value format – it is highly unlikely that the Federal Reserve will consider printing them again. Another reason the $ 1,000 bill was discontinued is that it was not very profitable to produce. In fact, it was cheaper to print a bunch of $ 1 bills than a $ 1,000 bill.

It is understandable that denominations as high as these no longer exist. Let us remember that in the XXI century, no one uses paper money too much. At the end of the day, it is much safer – and easier – to carry a credit card or debit a lot of bills in your pocket.

In conclusion, the 1,000 bill did exist!

To sum up:

  • Yes, there is a 1,000 dollar bill and it is considered – technically – as legal tender, even if it is not.
  • The $ 1,000 bill is worth much more than that. In fact, its average market price is $ 20,000 per unit.
  • The faces of Alexander hamilton Y Grover cleveland adorn the two sets of US $ 1,000 bills.
  • Its original purpose was to facilitate large transactions between banks and US government institutions. Many of these bills were used to transfer large sums of money from bank to bank or to buy real estate..

Did you know that the $ 1,000 bill is not alone? There was also a $ 500 bill, a $ 5,000 bill, a $ 10,000 bill, and even a $ 100,000 bill.

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