A $100,000 Bill? The Story Behind Large-Denomination Currency

George Marks/Getty Images
George Marks/Getty Images

Your local convenience store may not accept bills larger than $20, but once upon a time you could have paid for your gum with a nice fresh $10,000 bill. What's the story behind the large-denomination bills that the government used to issue?

What big bills has the U.S. issued?

In 1928, the federal government overhauled its system of printing banknotes. It shaved about an inch of length and just under a half of an inch in width off the bills and issued the new smaller bills in the $1 to $100 denominations with which we're familiar. However, the Treasury also issued larger denominations. They featured William McKinley ($500), Grover Cleveland ($1,000), James Madison ($5,000), and Salmon P. Chase ($10,000).

Who the heck was Salmon P. Chase?

chase-10000

His name might not be as familiar as those of the presidents featured on the other big bills, but once upon a time Chase was a big wheel in American politics. Chase, a mid-19th century politician, served as Chief Justice of the United States, spent stints as Ohio's governor and senator, and was Lincoln's first Secretary of the Treasury.

Nice resume, but how did Chase end up on the $10,000 bill?

He was in the right place at the right time. When the federal government started issuing greenback notes in 1861, Chase, as Secretary of the Treasury, was in charge of designing and popularizing the new currency. The politically ambitious Chase had to pick a portrait subject for the first $1 bill, and he chose"¦Salmon P. Chase.

Although putting his face in everyone's pocketbooks never propelled Chase to the presidency, when the Treasury started issuing the new $10,000 bills in 1928 they put Chase's portrait on the obverse to honor the man who helped introduce modern banknotes.

Even if you don't have a $10,000 bill Chase's name might still be in your wallet. Chase National Bank, the forerunner to Chase Manhattan Bank, was named in his honor.

Why on earth was the government printing such giant bills in the first place?

Believe it or not, it wasn't just to save space in fatcats' wallets. When the Treasury started printing these giant bills, their main purpose was making transfer payments between banks and other financial institutions. Before sophisticated wire transfer systems were fully developed, it was apparently easier and safer just to fork over a $5,000 bill to settle up with a fellow bank. Once transfer technology became safer and more secure, there really wasn't much need for the big bills anymore.

What's the largest denomination of currency the U.S. has printed?

wilson-100-grand

That would be the Series 1934 $100,000 gold certificate. The Bureau of Engraving and Printing only made these notes during a three-week stretch during December 1934 and January 1935. Even the few plutocrats who had that much cash during the Depression couldn't carry one of the $100K bills, though. They were only used for official transactions between Federal Reserve Banks, and the Treasurer of the United States only issued them to Fed banks that had an equal amount of gold in the Treasury. The note featured a picture of Woodrow Wilson.

Are any of these bills left in circulation?

There sure are, but don't expect to find a $500 bill the next time you make an ATM withdrawal. The Treasury announced on July 14, 1969, that it would quit issuing the $500, $1,000, $5,000, and $10,000 notes immediately, since the bills were so sparsely circulated. It's not like the Bureau of Engraving and Printing had to stop the presses, either; the bills hadn't seen an actual print run since 1945.

When the Treasury discontinued the bills, they rapidly fell out of circulation. However, a few are still lingering; as of May 2009, there were still 336 $10,000 bills at large. At the same time, Slate reported that there were also 342 $5,000 bills and 165,732 $1,000 bills still floating around.

If they're out of circulation, can you still spend them?

Although the Treasury is no longer issuing these bills, according to the Fed they're still legal tender. So yes, although it would probably raise some eyebrows, you could walk into Best Buy and plunk down a $1,000 bill to pay for a new plasma TV.

That wouldn't be the smartest move, though. Most of the high-denomination bills that are left in circulation are in collectors' safes, and at auction the bills tend to fetch prices that far exceed their face values. For instance, a pristine $10,000 bill can command a price as high as $140,000 on the open market.

What happens if you bring one of these big bills to a bank?

If you put it in your safety deposit box, your bill will be safe. Chase Bank actually acquired one of the $10,000 bills in its currency collection when a deceased customer's family found the bill in her deposit box and traded it for $10,000 in cash. Deposit the historical loot into your checking account, though, and it's bad news for the bill. You'll get the cash deposited in your account, but since the 1969 order to stop distributing these bills, Fed banks have been pulling the notes from circulation and destroying them whenever they are received.

Of course, there are other potential pitfalls to depositing a big bill, like blowing your cover when you're on the lam. Last February, three teenagers in Texas Township, Michigan, swiped one of their parents' safes and drove to Birmingham, Alabama, with their booty. Their downfall came when they tried to change an antique $1,000 bill from the safe at a bank. The police nabbed the thieves after a call from a suspicious teller.

So there was never a real $1 million bill?

Nope, but that doesn't mean that people haven't tried to make one. In 2004, a woman in Covington, Georgia, tried to pick up a $1,675 tab at a local Wal-Mart with a forged $1 million bill featuring a picture of the Statue of Liberty. Police quickly arrested her. It's hard to say what's more ludicrous: trying to pass off a million-dollar bill or thinking that Wal-Mart would just fork over $998,325 in change.

Someone gave me a fake $1 million bill as a joke. Was that illegal?

As long as you don't try to spend it or deposit it, you're in the clear. Gag makers and some religious and political groups have printed novelty $1 million bills for decades. In 1982, these novelty bills came to the attention of the Secret Service, which ruled that since there wasn't a real $1 million bill, these joke versions weren't technically forgeries or violations of any laws.

What about the opposite of these bills: the elusive $2 bill?

Although you don't see the $2 bill all that often, it's still a circulating denomination of American currency. According the U.S. Treasury, there are over $1.5 billion worth of $2 bills currently circulating around the world. However, since the bill changes hands less frequently than other denominations, it's not printed as often, either.

10 Products for a Better Night's Sleep

Amazon/Comfort Spaces
Amazon/Comfort Spaces

Getting a full eight hours of sleep can be tough these days. If you’re having trouble catching enough Zzzs, consider giving these highly rated and recommended products a try.

1. Everlasting Comfort Pure Memory Foam Knee Pillow; $25

Everlasting Comfort Knee Pillow
Everlasting Comfort/Amazon

For side sleepers, keeping the spine, hips, and legs aligned is key to a good night’s rest—and a pain-free morning after. Everlasting Comfort’s memory foam knee pillow is ergonomically designed to fit between the knees or thighs to ensure proper alignment. One simple but game-changing feature is the removable strap, which you can fasten around one leg; this keeps the pillow in place even as you roll at night, meaning you don’t have to wake up to adjust it (or pick it up from your floor). Reviewers call the pillow “life-changing” and “the best knee pillow I’ve found.” Plus, it comes with two pairs of ear plugs.

Buy it: Amazon

2. Letsfit White Noise Machine; $21

Letsfit White Noise Machine
Letsfit/Amazon

White noise machines: They’re not just for babies! This Letsfit model—which is rated 4.7 out of five with nearly 3500 reviews—has 14 potential sleep soundtracks, including three white noise tracks, to better block out everything from sirens to birds that chirp enthusiastically at dawn (although there’s also a birds track, if that’s your thing). It also has a timer function and a night light.

Buy it: Amazon

3. ECLIPSE Blackout Curtains; $16

Eclipse Black Out Curtains
Eclipse/Amazon

According to the National Sleep Foundation, too much light in a room when you’re trying to snooze is a recipe for sleep disaster. These understated polyester curtains from ECLIPSE block 99 percent of light and reduce noise—plus, they’ll help you save on energy costs. "Our neighbor leaves their backyard light on all night with what I can only guess is the same kind of bulb they use on a train headlight. It shines across their yard, through ours, straight at our bedroom window," one Amazon reviewer who purchased the curtains in black wrote. "These drapes block the light completely."

Buy it: Amazon

4. JALL Wake Up Light Sunrise Alarm Clock; $38

JALL Wake Up Light Sunrise Alarm Clock
JALL/Amazon

Being jarred awake by a blaring alarm clock can set the wrong mood for the rest of your day. Wake up in a more pleasant way with this clock, which gradually lights up between 10 percent and 100 percent in the 30 minutes before your alarm. You can choose between seven different colors and several natural sounds as well as a regular alarm beep, but why would you ever use that? “Since getting this clock my sleep has been much better,” one reviewer reported. “I wake up not feeling tired but refreshed.”

Buy it: Amazon

5. Philips SmartSleep Wake-Up Light; $200

Philips SmartSleep Wake-Up Light
Philips/Amazon

If you’re looking for an alarm clock with even more features, Philips’s SmartSleep Wake-Up Light is smartphone-enabled and equipped with an AmbiTrack sensor, which tracks things like bedroom temperature, humidity, and light levels, then gives recommendations for how you can get a better night’s rest.

Buy it: Amazon

6. Slumber Cloud Stratus Sheet Set; $159

Stratus sheets from Slumber Cloud.
Slumber Cloud

Being too hot or too cold can kill a good night’s sleep. The Good Housekeeping Institute rated these sheets—which are made with Outlast fibers engineered by NASA—as 2020’s best temperature-regulating sheets.

Buy it: SlumberCloud

7. Comfort Space Coolmax Sheet Set; $29-$40

Comfort Spaces Coolmax Sheets
Comfort Spaces/Amazon

If $159 sheets are out of your price range, the GHI recommends these sheets from Comfort Spaces, which are made with moisture-wicking Coolmax microfiber. Depending on the size you need, they range in price from $29 to $40.

Buy it: Amazon

8. Coop Home Goods Eden Memory Foam Pillow; $80

Coop Eden Pillow
Coop Home Goods/Amazon

This pillow—which has a 4.5-star rating on Amazon—is filled with memory foam scraps and microfiber, and comes with an extra half-pound of fill so you can add, or subtract, the amount in the pillow for ultimate comfort. As a bonus, the pillows are hypoallergenic, mite-resistant, and washable.

Buy it: Amazon

9. Baloo Weighted Blanket; $149-$169

Baloo Weighted Blanket
Baloo/Amazon

Though the science is still out on weighted blankets, some people swear by them. Wirecutter named this Baloo blanket the best, not in small part because, unlike many weighted blankets, it’s machine-washable and -dryable. It’s currently available in 12-pound ($149) twin size and 20-pound ($169) queen size. It’s rated 4.7 out of five stars on Amazon, with one reviewer reporting that “when it's spread out over you it just feels like a comfy, snuggly hug for your whole body … I've found it super relaxing for falling asleep the last few nights, and it looks nice on the end of the bed, too.” 

Buy it: Amazon 

10. Philips Smartsleep Snoring Relief Band; $200

Philips SmartSleep Snoring Relief Band
Philips/Amazon

Few things can disturb your slumber—and that of the ones you love—like loudly sawing logs. Philips’s Smartsleep Snoring Relief Band is designed for people who snore when they’re sleeping on their backs, and according to the company, 86 percent of people who used the band reported reduced snoring after a month. The device wraps around the torso and is equipped with a sensor that delivers vibrations if it detects you moving to sleep on your back; those vibrations stop when you roll onto your side. The next day, you can see how many hours you spent in bed, how many of those hours you spent on your back, and your response rate to the vibrations. The sensor has an algorithm that notes your response rate and tweaks the intensity of vibrations based on that. “This device works exactly as advertised,” one Amazon reviewer wrote. “I’d say it’s perfect.”

Buy it: Amazon

This article contains affiliate links to products selected by our editors. Mental Floss may receive a commission for purchases made through these links.

The Best Way to Defer Your Credit Card Payments During the Coronavirus Shutdown, Explained

Credit card companies can offer financial assistance, but there can be drawbacks.
Credit card companies can offer financial assistance, but there can be drawbacks.
alexialex/iStock via Getty Images

A number of financial relief options are available to Americans who have been affected by the unprecedented health situation created by the spread of the coronavirus. Mortgage companies are offering forbearances; insurance companies have lowered premiums for cars that aren’t being driven. Credit card companies have also acknowledged that cardholders may have trouble keeping up with their bills. While many companies are eager to help with debt and interest, there are some things you should know before picking up the phone.

The good news: If you’re unable to make your minimum monthly payment in a given month, major card issuers like Chase, Capital One, and others are willing to grant a forbearance. That means you can skip the minimum due without being hit with a negative strike on your credit report for a missed payment.

A forbearance is no free ride. Interest will still accrue as normal, and the card issuer may consider the missed payment deferred, not waived. If you pay $50 monthly, for example, and are able to skip a May payment, make sure the card won't expect a $100 minimum in June to cover both months. Ask the company to define forbearance so you know what’s expected. Some may be willing to lower your minimum payment instead, which could be a better option for you.

While the skipped payment won’t impact your FICO credit score directly, be aware that it could still have consequences. Because many minimum payments mainly cover interest, your balance won’t remain the same—it will continue to grow. And because that interest is still adding up, your total amount owed is still going up relative to your available credit, which can affect your score.

If you have a sizable amount due, the National Foundation for Credit Counseling (NFCC) recommends looking into alternatives to forbearance, like using savings to pay down some high-interest cards, taking advantage of zero-interest balance transfer offers, or even taking out a personal loan with a lower interest rate.

If you have multiple credit card balances and the prospect of trying to get through to a human to discuss payment options seems daunting, the NFCC is offering their assistance. The agency can put you in touch with a credit counselor who can act on your behalf, obtaining forbearances or other relief from the card companies. Be advised, though, that card issuers may want to get your permission to deal with the counselors directly. The program is free and you can reach the NFCC via their website.

Be mindful that emergency relief is different from a debt management plan, which consolidates debt and can have a negative impact on your credit card accounts.

In many cases, the best thing to do is to pick up the phone and deal with the card issuer directly. Explain your situation and ask about what options they have. Some might waive payments. Others might offer to lower your interest rate. No two card issuers are alike, and it’s in your best interest to take the time to see what’s available.

[h/t lifehacker]