The $500 bill features the portrait of President William McKinley, serving from 1897 until his assassination in 1901. This high-value currency denomination was issued in 1928 and discontinued in 1969.
While no longer in circulation, the $500 bill remains fascinating to collectors and historians as an artifact of the nation‘s financial history. Let‘s explore the story behind this little-seen banknote.
Rarity and Value of $500 Bills Today
The Treasury Department and Federal Reserve ordered a stop to $500 bill printing in 1945, after almost 20 years of issuance. The outstanding $500 bills were officially discontinued in 1969.
According to the U.S. Treasury Department records, there are only 336 known $500 bills still in existence today. Most of these are held by museums, numismatic scholars, or private collectors.
This extreme rarity results in significant collectible value above face value:
- Circulated $500 bills are worth $550 to $1,100
- Uncirculated bills can reach $4,000 to $7,000
- Rare issues like 1933 $500 bills have sold for $29,900+ at major auctions
So despite being out of circulation for over 50 years, $500 bills maintain appreciable value due to their scarcity and historic significance.
Security Features of the $500 Bill
The $500 bill contained advanced security features for its era to prevent successful counterfeiting:
| Security Feature | Description |
|---|---|
| Portrait Frame Lines | Intricate engraved lines around McKinley‘s portrait |
| Blue & Red Security Fibers | Tiny red and blue fibers embedded in the paper |
| Security Strip | Polyester strip embedded in the bill readable from both sides |
| Microprinting | Extremely small text visible under magnification |
| Color Shifting Ink | Numeral 500 appeared to shift color from black to green |
| Watermark | Faint image of McKinley visible when held up to light |
These complex engraving techniques and design elements made the $500 bill much harder to accurately reproduce compared to small denomination bills of the time. The security strip in particular offered enhanced counterfeit resistance.
William McKinley‘s Place in U.S. Currency History
William McKinley served as the 25th U.S. President from 1897 until his assassination in 1901. He is best known for leading the nation to victory in the Spanish-American War. During his administration, the U.S. acquired Puerto Rico, Guam, and the Philippines and annexed Hawaii.
On domestic policy, McKinley presided over a return to economic prosperity after the Panic of 1893. He advocated protective tariffs to support American businesses and ran on the gold standard platform. McKinley‘s pro-business policies and wartime leadership made him an icon of Republican ideals at the turn of the 20th century.
His position on the $500 bill highlights his historical reputation as a strong leader who restored both economic and military power to the United States.
The Legend of the $500 McKinley Pistol Bill
An urban myth suggests some $500 McKinley bills were printed depicting the president holding a pistol behind his back. This odd imagined design was intended to reference McKinley‘s assassination with a concealed weapon.
However, there is no evidence any $500 bills actually had this pistol depiction. Secret Service records do not document any such design. It appears to simply be a false legend surrounding the $500 bill that has been perpetuated over the years without any basis in fact.
Nonetheless, the myth continues to prompt debate among currency collectors over its potential origins. It remains one of the more intriguing folklore tales from the world of paper money numismatics.
Gradual Phase Out of $500 Bills from Circulation
$500 bills were never common in regular commerce, serving primarily for bank transactions and large financial deals rather than everyday purchases. However, they did circulate to some extent until the late 1950s.
After World War 2, more and more $500 bills were held firmly in bank vaults as reserves rather than circulating publicly. This trend increased over the next two decades. A typical bank might have only had a few $500 bills on hand for exchange even in the early 1900s.
By the 1960s, the Federal Reserve estimated only about 1% of outstanding $500 bills were actively circulating, while over 60% were held by banks. With such little public use, the decision was made to cease their printing in 1945 and officially discontinue the denomination in 1969.
How Large Cash Transactions Are Reported to the Government
Banks and other businesses are required to report cash transactions over $10,000 to the federal government under the Bank Secrecy Act. However, this does not necessarily indicate suspicious activity on its own.
There are many perfectly legitimate reasons for conducting large cash transactions, including:
- Businesses depositing daily cash receipts
- Individuals cashing out investment assets
- Payment for high value collectibles or vehicles
- People consolidating multiple accounts or sources of cash
- Settlements or transfers between parties without bank accounts
- High dollar purchases paid in cash rather than wire transfer
The government does not view all large cash transactions as illegal or unethical. The reporting requirements help identify potential abuse patterns while allowing lawful use of cash.
So depositing a $500 bill or other large sum of cash into your bank account does not automatically trigger suspicion, only paperwork.
The $500 Bill Represents a Bygone Era
While once important for large financial transactions, the $500 bill has faded into history. This little-used high-value denomination ultimately became obsolete as banking practices shifted.
The $500 bill takes us back to a different era in finance over a century ago. In some ways, the phase out of the $500 and other large bills represents the falling importance of physical cash itself in the modern digital economy.
Yet as a historical artifact, the $500 bill retains unique value for collectors and others fascinated by the culture and lore around paper currency. This elusive banknote remains imbued with the mystique of the financial system and economy of generations long past.
