$500 & $1000 Bills Matter, Along with This U.S. Paper Currency

At the time this article was published, Atlanta Gold & Coin reported seeing thousands of paper bills and pieces of currency each year as a coin dealer that specializes in large collections. A simple starting point for deciding whether paper money might be worth more than its printed amount is its physical size. Many people now may be surprised to learn that a $1,000 bill once circulated.

The point is not the denomination, or the amount printed on the note; it is the bill’s actual physical dimensions.

Many Americans may not have realized the United States used to print physically larger size bills until 1923. For that reason, finding one of these larger notes, regardless of denomination, was a strong indication it could be worth more than face value. In certain cases, the difference could be considerable.

To lower manufacturing costs, the U.S. Treasury—specifically the Bureau of Engraving and Printing (BEP)—made paper money 30% smaller beginning in 1928. When this article was originally published, these remained the same-size notes used in circulation.

Because currency made in 1928 and afterward was generally issued in very large numbers, it usually carried only modest value beyond face value. A few exceptions remained.

This article identifies six collectible United States notes issued in 1928 and later that could be quite valuable. For readers new to collecting paper currency who wanted a quick introduction, the original article recommended this article.

For this article’s purposes, the discussion is limited to circulated, small-size notes. Error notes, varieties, and certified uncirculated examples can also be very valuable, but fall outside this overview.

1928 Gold Certificates

Students of history may remember that FDR signed Executive Order 6102 in 1933, making gold-coin ownership illegal for U.S. citizens. The order extended to gold certificates as well. The final gold certificates were issued in 1928, and they could be redeemed for U.S. gold coins through 1933. Although the nation technically stayed on the gold standard until 1971, after 1933 only foreign central banks could redeem certificates for gold bullion.

Gold certificates dated 1928 came in $10, $20, $50, $100, $500 and $1,000 denominations, though the $10 and $20 sizes are encountered most often. Their gold seal and the words “gold certificate” left of the portrait help identify them. Though generally worth less than large-size notes, they remained collectible; the original article reported even the smallest denominations trading for upward of $100 or more.

These notes can occasionally be mistaken for 1934 and 1935 North Africa emergency-issue notes. The next section explains a couple of features that distinguish them.

1934 & 1935 North Africa Emergency-Use Notes

North Africa emergency-use notes dated 1934 and 1935 were created during World War II for use by U.S. troops. They appeared in $1, $5 and $10 denominations, with yellow seals resembling those on gold certificates.

The reverse side, however, carried a blue seal, and the top of the note included wording that identified it as a silver certificate.

These notes paid troops during the war and also served a strategic purpose. If troops were captured or the war had been lost, the special notes could have been demonetized, leaving them without value and reducing that risk.

At publication, Because the war was won and production was comparatively limited, these notes later became collector pieces and traded at a meaningful premium over their face value.

As might be expected, larger denominations generally brought greater value. At publication, most of these silver certificates traded in the $20 – $60 range, while high-end examples, star notes, and certified bills could trade for hundreds of dollars.

1934 & 1935 Hawaii Emergency-Use Notes

Hawaii emergency-use notes dated 1934 and 1935 were likewise issued because of World War II, providing a safeguard if an enemy seized U.S. currency. After the Pearl Harbor attack, all paper money on Hawaii was recalled and overprinted: a brown seal appeared on the front, while “Hawaii” was printed on the reverse.

The series was issued in $1, $5, $10 and $20 denominations. The $1 note was a silver certificate; the remaining notes were Federal Reserve Notes.

Millions of these notes were printed, yet, like the North Africa issues, they became collector pieces after Germany’s defeat in World War II. The most common were $1 bills, and $5 bills were least common. At publication, they traded in ranges similar to North Africa emergency notes, with star notes and high-end certified examples reaching hundreds of dollars.

Their brown seals sometimes lead to confusion with 1929 U.S. Banknotes or National Currency. The distinction is addressed below in the discussion of National Currency notes.

1929 National Currency

U.S. national bank notes, also called national currency, were issued by National Banks chartered by the federal government. Denominations included $5, $10, $20, $50 and $100. Each note bears a charter number on its face, identifying the National Bank that produced it.

These Federal Reserve notes are marked with the words “National Currency” across the top and, in most cases, were issued in relatively large quantities.

In 1929, all twelve Federal Reserve Banks produced national currency. Some much smaller National Banks also issued it, often in limited numbers.

One useful guideline is that a note from one of the 12 Federal Reserve Banks probably carries only modest value above face value.

In average circulated condition, a note’s size and denomination could place its value anywhere from 1.5 to 5 times face value. A high-condition example from a smaller or less familiar bank, however, could reach hundreds or even thousands of dollars.

These notes are especially collectible when a collector finds one from a hometown. Over the years, Atlanta Gold & Coin handled many National Bank Notes from smaller communities, including some with only a few known surviving examples. As with coins and other currency, lower production generally meant higher value.

1928 & 1934 $500 Notes

Did you know that the U.S. Treasury issued $500 bills through 1934?

President William McKinley appears on the obverse, or front, of these notes. Gold certificates and Federal Reserve Notes were both issued in 1928, but this section concerns only the Federal Reserve Notes. Although produced in substantial quantities, they no longer circulated and were sought by investors and collectors.

Although production ended, these notes remained legal tender and could be used as currency. Their stronger appeal was as collector pieces. At publication, values varied widely, from 1.5 times face value to thousands of dollars. Many notes showed pinholes from corkboard display, while others carried several creases and folds from time spent in purses or wallets.

Notes in better condition—particularly those without pinholes or creases and with attractive corners—were reported to trade for at least twice face value.

The $500 bill ended in 1969. This can confuse collectors because the final date shown on $500 notes is “Series of 1934.”

Fun fact: The use of $500 bills ended because they were not widely used and because of concerns about illicit uses such as money laundering. Banks destroyed notes deposited or redeemed there, leaving far fewer survivors than the original mintage.

1928 & 1934 $1,000 Notes

Although $500 bills are striking, few people beyond coin and currency circles have ever seen a $1,000 bill in person. As with the $500 bill, this discussion covers Federal Reserve Notes rather than gold certificates.

For anyone unfamiliar with the $1,000 bill from 1928 and 1934, Grover Cleveland appears on its front. Before 1928, the $1,000 bill instead featured Alexander Hamilton, the first U.S. Treasury Secretary.

When this article was originally published, a $1,000 bill might not have seemed especially valuable amid high inflation and rising prices, but it had been quite valuable in the 1930’s. As a reference point, the article stated that a $1,000 bill in 1934 equaled roughly $22,000 when adjusted for inflation at publication.

It is reasonable to conclude that few people carried notes of this size regularly. Most $500 and $1,000 bills were used chiefly for large transactions between banks.

The $1,000 bills were discontinued for the same reasons as the $500 bill. Like the $500 bill, $1,000 bills remained legal tender and could be spent as currency. At the time of publication, however, they often traded for at least 1.5 times face value or more, so the original article advised treating one as a collectible rather than ordinary currency.

At publication, As with the $500 note, the $1,000 note was withdrawn from circulation in 1969. $1,000 notes printed through 1969 continue to display “Series of 1934” on their front.

Summary

In summary, this article examined six United States notes issued in 1928 or afterward that carry value beyond face value, with some potentially having considerable collector value.

The first note included in this specialized group is the 1928 gold certificate, which sells for amounts several times its stated denomination. It technically should have been surrendered after Executive Order 6102 was issued, although evidently not every holder did so.

This group also includes North Africa notes. Like gold certificates, they feature a gold-colored stamp or seal. Their importance is historical: they were emergency-issue notes used during World War II and can be worthwhile additions for people who collect World War II memorabilia.

The same point applies to Hawaii emergency-issue notes, which were likewise produced in response to World War II after the attack on Pearl Harbor.

The article also covered National Currency, or National Bank Notes, and the possible values associated with them, particularly notes from smaller National Banks that issued only a limited quantity of bills.

The discussion concluded with the “high-note”, including the $500 and $1,000 Federal Reserve Notes. When this article was originally published, these notes were worth more than $10,000 and $20,000 in today’s-dollar terms, yet the public did not commonly use them, helping make them especially desirable.

The original article expressed hope that this overview was useful and, at the time of publication, invited readers to contact Atlanta Gold & Coin Buyers about these notes in a collection, as well as larger-size notes issued in 1923 and earlier. It also stated that Atlanta Gold & Coin Buyers had coin expertise, regularly handled paper currency, and offer competitive rates on both coins and currency.

Until next time, happy treasure hunting!