A way to possibly get $500 Bills circulating again

Okay, as some of you may know, I have talked to a LOT of government officials recently, to find out and confirm the $2 bill redesign, and of course, I had to pop the question, "Is there ANY chance of getting the $500 bill reissued?" and I explained how I have wrote to many government officials about the matter, and that they claim that there is no demand for a bill larger than $100, which of course, is not true, as I see people using multiple $100 bills very regularly, so one person I talked to said, "You could try talking to your local bank. Banks demand what they want from the Federal Reserve Banks, and banks demand what the people want, so, you might want to try asking them about this" So, even if I am one person, I may join a bank branch or two, and ask their managers to demand $500 bills for me. Even though I am one person, perhaps if I have multiple banks demanding $500 bills for me, the Treasury might be willing to take action for me.

I encourage anyone who goes to a bank, who hates carrying large amounts of cash in the form of multiple large amounts of bills or debit or credit cards or checks, to request for their bank to speak to the Federal Reserve Banks about $500 bills.

 

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I know you've been pushing for these Drago, but here's my take: the number of cash transaction involving $500 + is very limlited; most people during a normal shopping week rarely spend that amount, and if they do, they pay by check or credit card. Maybe the "rich and famous" carry large amounts of cash, but I personally would be very uncomfortable with a $500 note in my wallet. On the other hand, I think the casino industry would welcome the larger denomination.

 

Can you say "OCD"?

 

Well my father sometimes uses cash, and he spent over $300 a few days ago on simple groceries, and a $200 or $500 note would have came in handy there. I am sure $500+ transactions happen regularly by large families, and not everyone wants to use credit, debit or checks, and as I've said in the past, if the government feels we should have a "choice between $1 bills and dollar coins, I think its only fair to have a choice between $200 and $500 bills and checks, credit and debit. These large denominations should be available for those who wish to take out fairly large amounts of money from banks, regardless of demand for these large denomination notes. The Euro Zone seems to have no problem with printing them and they are worth considerably more than U.S. $200 and $500 notes, which is why we should also have a $1,000 note. I get a check of almost $700 a month and I would love it if I could cash my check, make up the difference and take out a $200 note and a $500 note, instead of wads of $50s and $20s, which they usually give out, unless you request $100 notes and most of the time, they do not even have $100 notes, so, how could there not be demand for large notes when people are withdrawing all of the $100 notes?. So its are royal pain, believe me, and I deal in large amounts of cash by cashing my check every month, and I would rather carry two large bills vs, 7+ smaller but still large bills, that may attact attention from unwanted people.

Oh, and why would you be uncomfortable carrying a $500 note? Most people, if not all people would not even know that you are carrying one. They might notice that buldging wad of five $100 notes a little easier, though.

 

Actually, you might be more comfortable carrying one 500 dollar note and one 200 dollar note instead of a 'wad' of 100 dollar notes, and it's possible the Gov't might issue them again (doubtful to me, but possible). However, I don't foresee the banks ordering them to give out to customers, since not that many people want them, and even if they do manage to order 1 strap, how's the bank going to feel when it only gives out one or two of them a month to people who want them. The second logistical problem is that there is no way in heck that regular stores, hotels, etc., will be wanting to accept them. Number one, if they do, then they can't exactly give them out in change, so it ties up their money until they can deposit the bill and get smaller ones for their use, and Number two, they are not really thrilled about 100's and 50's right now. Yes, the major grocery stores do accept 100's but many hotels/motels will not and I don't know too many smaller mom and pop ones that will. Gas stations sometimes have notices saying the largest bill they accept is a 20.00.

So, I think in this case the Gov't is correct in assuming that 500's and 1000's are not necessary in today's atmosphere, and that 100's are perfectly acceptable for carrying. The only time the larger bills would be good is to travel with large amounts of money and reduce the bulk 5 to 10 times. The gov't now is not really interested in making it easier for people to travel with large amounts of cash, so why would they do this?


And, IMO, the 200.00 bill concept is just way out there and will never be accepted. Look at the 2.00 bill right now. It's sometimes used, but not that much, and most people don't care for it. They'd rather have 2 one dollar bills.

 

While I admire your enthusiasm, I think you need to be a little more realistic about your expectations.

Asking your local bank for $500.00 notes is not going to get you anywhere. Most banks do not order their money from the Federal Reserve. Most banks order their money from other banks. Assuming that you can get the vault manager at your local bank to ask for $500.00 notes, they are simply going to be told that these are not available because the Fed does not issue them anymore. No one with any sort of authority or pull at the Fed is ever going to hear the question through these channels. There are too many layers between your request to your local bank and the Fed to make any impact.

 

I use my CC with a rewards program so currency is truly no substitute from a practical standpoint. I don't see this happening. From a production and anti-counterfeiting perspective, it really makes no cents :smile

 

I spend approx $600 to $700 dollars a day in fuel. There is a major flaw in the $500 bill idea. Though I have little problem at truck stops using $100 bills most retailers don't like to accept them as it depletes the register of lower denomination bills as most drop money through out the day to prevent loss in case of robbery.

 

The keyword there is sometimes and your basing your argument on just one person and just the argument and example of what you would think is easier in terms of buying stuff that cost more than $100. I'd say most people who buy anything over $100 are going to use plastic, check or wire transfer (for the really big purchases).

I see more people pay with credit/debit, checks or even food stamps than spending over $100 in cash on groceries. Most don't want to carry too much cash in case of loss or theft, you can't get your money back in most cases if it's cash, with a credit/debit you can.

The only people I can think of that would benefit from large denominated bills would be banks (to transfer large sums between each other) and or drug dealers who operate solely with cash.

Keep dreaming though, but it's not gonna happen until inflation is so bad that $500 is used to buy candy bars.

 

Drago, are all of those hundreds in your pocket really that much of a burden?

 

Drago, give it up.

 

Too many people use credit cards and debit cards. A bank will think you're nuts. /thread

 

When 75% or more of the population has credit cards with credit limits under $500, the idea of a larger denomination bill wouldn't make any sense.

 

I believe $500 and $1,000 notes were used up until maybe 1970 or so although from a much earlier series date.

Now I'd guess a $100 bill in 1970 is roughly about the same as if we had a $500 bill today,....so it's like our biggest bill has shrunk from a $100 bill to a $20 bill ( in 1970 terms).

 

With the way inflation is going you'll need a $500 bill to get a cup of coffee someday........

 

Actually, I believe a $100 bill back in 1970, is about a $1,000 bill today. THAT is why I fight so hard, even for that denomination's return.


Merc Crazy:

I do not have to give up. This idea may be considered eventually.

Kasia:

A $200 bill would not be a bad idea. The only reason the $2 bill doesn't circulate so well, is that it is so close in denomination to the $1 bill. And also, look at the $20 bill. It is our most popular bill, here in the U.S. If the $20 bill circulates so well, why wouldn't a $200 bill circulate fairly well? The $200 bill has a larger gap than the $2 bill does. The $200 bill has a $100 gap between it and the $100 bill. The $2 bill only had $1 betwwen the gap of the $1 bill and itself, which makes a whole lot of difference, in my opinion. Even though I believe we should STILL try to find a way to get our $2 bill (and half dollar coin) circulating.

 

What happens if somone comes into the shop and buys a 10 dollar item with a 500 dollar bill? I'd have to check it for counterfeit, empty out my drawer, and make a bank run every single time. Just saying.

 

pretty easy, don't take $500 bills for $10 purchases. I try to pay cash for gas to get it cheaper, usually pay with a $100 bill, it runs $60+ to fill my truck maybe $50 for the car, they don't even blink an eye at aC-note anymore. I'm sure they would tell me don't do this again if I bought 3 gallons of gas.

 

oh, how I wish I had the problems you seem to have!!!

Never in my life have a had to many annoying $100 bills in my wallet!!

 

When it is, it won't be because of your efforts. No offense. You don't have deep enough pockets nor are you in a position powerful enough to command the respect and attention of your representatives, one of which would be required to push a law like that into consideration. Your best odds would be creating a petition on a site and collecting "signatures" on it to try and bring the $500/$1k bills back, but that would probably require somewhere in the realm of 500k-1m signatures for your representative to even give it the time of day.