I know I sound crazy for bringing up the same topics, but... (Large Denominations)

We'll see them when snickers cost $25.

 

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You have to realize that even when they were making $500 and $1000 notes, it wasn't for general commerce. People didn't have them in their wallets walking around town. You couldn't get them at most banks. They were intended entirely as a means to transferring large sums of money between banks, as this was before electronic transfers. This is what the government will tell you when you write to them. 99% of the people aren't going to utilize bills that large, even if they are available to them. It's much easier and safer to use plastic in higher amounts. I see your point, but from a practical standpoint, it's never going to happen. They are cutting dollar coins as a means to eliminate waste (though they're wrong) so producing more denominations that won't get used just won't get far.
Guy

 

You just stole my thunder Cole! I was going to say the same thing about what the $500 and larger denomination notes were used for! :yes:

 

Sorry Doc. I just touched on it, so you could fill in the blanks.
Guy

 

1. Everything Guy said, these weren't for people to use normally.
2. A $500 bill in 1929 would be like a $6500 bill today.
3. If anything I'd think a $250 bill would be most practical.
4. Electronic transactions are the present & future.

 

This guy has a better chance of curing cancer, aids, Alzhiemers and Parkinsons all at the same time and all by himself!

 

No need, your explanation was succinct.

 

I've heard that from multiple sources too, but those sources are wrong.

Here's the explanation direct from the *original* source:

If anyone at the Treasury in 1969 had thought they were fighting crime by taking this action, you can bet that they would've patted themselves on the back by highlighting that fact in the press release. Such effects just weren't on their radar at the time....

By the way, I got that press release from the O'Donnell book, which also provides the following statistics on the number of high-denomination notes outstanding:

As of 12/31/1945:
$500: 903,404
$1000: 797,852
$5000: 1,405
$10000: 2,327

As of 12/31/1968:
$500: 488,295
$1000: 291,894
$5000: 634
$10000: 383 (and 100 of those were at Binion's Horseshoe!)

So despite the inflation, and population growth, that had occurred during those 23 years, the usage of these denominations had declined sharply. The lack-of-demand explanation fits the facts.

 

He's right, no one of importance will ever read your letters/emails. Come on man this is America, your voice counts. You need to recruit a heavy hitter to present your idea to the President. I'd start with Monica Lewinsky.

 

Correct.