The $1000 bill, also known as the large-denomination bill, is the highest valued banknote ever issued for public circulation by the United States Treasury. Known as the “grand” or “large,” these high-value notes were last printed in 1945 and were officially discontinued in 1969. However, all U.S. currency remains legal tender, meaning the $1000 bill can still be used for transactions and is worth $1000. But due to their rarity and lack of public circulation for decades, few people have actually seen a $1000 bill in-person. This often raises questions around the continued legality and potential uses for the $1000 bill today.
Quick Facts on $1000 Bills
- The $1000 bill features a portrait of Grover Cleveland on the front.
- $1000 bills were first issued by the U.S. government in 1918.
- Less than 350,000 $1000 bills were printed after 1945.
- The last $1000 bills were issued to the Federal Reserve in 1945.
- $1000 bills were officially discontinued as legal tender in 1969.
- All U.S. currency remains legal tender indefinitely by federal law.
- $1000 bills in circulation today are extremely rare.
With $1000 bills no longer being printed for over 75 years, very few remain in circulation today. But their legal tender status remains, leaving some to wonder about the rationale behind their continued legality.
Why Were $1000 Bills Discontinued?
The main reason $1000 bills were discontinued in 1969 was due to a lack of public use. For decades, the highest denomination note circulating among the U.S. population had been the $100 bill. Larger notes like the $500 bill and $1000 bill were seen as inconvenient and unnecessary for routine transactions. Most banks did not stock the bills either, making them difficult to obtain.
The Federal Reserve ordered a stop to $1000 bill printing in 1945, gradually reducing circulation. Then in 1969, the Treasury and Federal Reserve discontinued all large-denomination bills, ceasing to be printed or issued. While no longer produced, all U.S. currency remains legal tender under federal law, regardless of when it was issued. This is why pre-1945 $1000 bills can still be used today as legal money.
There were also concerns about large-denomination bills being used for illegal activities like money laundering, tax evasion, and organized crime. However, little evidence actually linked $1000 bills to increased criminal behavior. But the public perception that these bills facilitated crimes helped lead to their eventual discontinuation.
How Many $1000 Bills Are Left?
The total number of original $1000 bills still estimated to exist today is between 300,000 and 350,000 notes. However, many have been lost, destroyed, or remain undiscovered in long-forgotten vaults and safety deposit boxes. So the number of collectible $1000 bills actively circulating among collectors and dealers is significantly smaller, likely no more than a few hundred thousand.
Their extreme rarity means $1000 notes today are worth far above their $1000 face value. In pristine condition, a $1000 bill can be valued between $1,500 to $4,000 by currency collectors and dealers. The exact resale value depends on factors like condition, printing Seal type, and serial number uniqueness. Damaged $1000 bills often sell for just their face value.
Legality of Owning $1000 Bills
Despite being discontinued decades ago, it is perfectly legal for individuals or financial institutions to own, use, and trade $1000 bills in the United States. U.S. Treasury regulations apply no restrictions to owning or possessing a $1000 bill. Bills issued prior to 1946 are collectible antiques but retain full legal tender status as currency.
Financial institutions typically follow extra guidelines around large-denomination bills. Banks require declaring any cash deposits over $10,000 to prevent money laundering. Private transfers of $1000 bills for over $10,000 in value may also be subject to additional IRS reporting. But in general, individual ownership or trade of $1000 notes faces no specific legal prohibitions.
It is also legal to spend $1000 bills at full face value, but it may prove extremely difficult in practice. Most businesses refuse to accept high-value old bills due to lack of familiarity and concerns of fraud. Banks also typically will not accept deposits of pre-1945 circulated $1000 bills. Although legal to spend, it is highly unlikely for $1000 bills to actually be used in retail transactions. Their value is now overwhelmingly collectible.
Federal Laws Allowing $1000 Bill Ownership
Here are the major federal laws and policies confirming the legal ownership status of $1000 bills:
- Currency and Coinage Act of 1965 – States all U.S. coin and currency remains legal tender regardless of when issued. This includes $1000 bills.
- 12 U.S. Code § 411 – Says all U.S. currency issued through the Federal Reserve system is legal tender that must be accepted at face value for payments.
- 31 U.S. Code § 5103 – Establishes the official U.S. dollar currency unit and states it is unlimited in amount for payments requiring settlement in money.
- Federal Reserve Operating Circular No. 2 – Details procedures for handling and redeeming U.S. Federal Reserve notes. Places no restrictions specific to $1000 bills.
- Title 31 Part 82 of the U.S. Code of Federal Regulations – Outlines legal obligations for U.S. coins and currency but includes no prohibitions against ownership or transactions involving $1000 bills.
Absent any statutes specifically restricting or banning $1000 bills, they remain federally legal. Policy changes could theoretically occur through new legislation or regulations in the future. But as of now, there are no laws criminalizing or limiting general possession of $1000 banknotes.
Arguments For & Against Continued Legality
Opinions remain split on whether $1000 bills should have been completely decriminalized decades ago when they were taken out of circulation.
Some key arguments on both sides include:
Arguments For Keeping $1000 Bills Legal:
- They represent collectors items and historical artifacts from the U.S. financial system.
- Demonetizing them could contradict other laws establishing unlimited legal tender status for U.S. currency.
- Ownership is highly limited and primarily serves investment purposes today rather than common transactions.
- Outright bans could infringe on personal liberties and involve overly restrictive government regulation.
Arguments For Making $1000 Bills Fully Illegal:
- Rarity makes them more likely to be used for illegal activities like counterfeiting, tax evasion, and money laundering.
- Their high face value facilitates crime, corruption, and large-scale transactions outside the financial system.
- Most developed economies have fully demonetized high-value paper currency.
- Continued legality runs contrary to the original justification for discontinuing their circulation.
There are merits on both sides of this debate. However, recent proposals in Congress to criminalize $1000 bills have gained little real traction. Major policy change remains unlikely barring a significant public interest shift against ownership of high-value paper currency.
Conclusion
While no longer produced for public circulation, $1000 banknotes remain perfectly legal to own, buy, sell and use as tender in the United States. This results from federal laws establishing the validity of U.S. currency regardless of when issued and from a lack of statutes expressly restricting $1000 bills. However, their extreme rarity, value to collectors, and potential risks mean $1000 notes have limited practical modern use outside of investments and novelty. The future legality of $1000 bills could potentially shift but shows no signs of substantially changing in the near-term without major public and political pressures. For now, $1000 banknotes occupy an interesting position as curiosities still maintainable as legal currency.