Comments on the proposed $250 bill?
sellitstore
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I have a few. We shouldn't fear discussing them here. And the politics of George Washington shouldn't be off limits here, should it?
We'll need to change several laws if this is going to happen.
Yes, there's the prohibition of a living person appearing on our currency-that would need to be changed. But why was this law created back in the 1860s in the first place. It was the public outrage of the Sec of the Treasury daring to put his own image on a 50 cent note. George Washington was the first President to offer an opinion on the idea of the head of state depicted on a coin. He prohibited it. That was what European kings did- not what the president of a democracy should do. Washington set this precedent back in the late 1700s. That's the symbolic significance of such a change.
Nobody (that I've heard) has mentioned the fact that this denomination would need to be authorized by law. We, along with other nations, decided to eliminate high denomination banknotes in order to combat money laundering. Would a new high denomination facilitate it?
Anyone else have some insights or thoughts or comments on mine?
Comments
"We, along with other nations, decided to eliminate high denomination banknotes in order to combat money laundering."
I do not believe this to be the reason for the elimination.
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I agree. I don't think it had to do with money laundering. It was to try to curb the movement of ill-gotten proceeds of criminal activity. (That is not in itself money laundering).
And I don't think it took a law - the Treasury just stopped issuing large bills. Similarly, the EU Central Bank stopped issuing 500 euro notes several years ago.
i think it slowed it some with big bill loss but didnt eliminate it. im waiting to see what happens when then the system goes cashless
Aside from all the other issues, a $250 note is not very practical. The $100, the $500 and the $1000 bills have had a lot of use, but what are you going to pull a $250 note out for? All around this just makes a mockery out of the original purpose of paper money, many others are far more schooled in the history of paper. Roger Sherman wanted precious metals written into the Constitution. During the Civil War a new age of paper money started developing. The biggest denom. notes strike me as a "big shot" thing back when they circulated. Many of us use $50 and $100 notes weekly in transactions. Whenever a new type of bill comes out people are going to ask "...is it real?" and then there will have to be a way to tell one way or other, with counterfeiters not far behind their production.
I can just see me going thru the Scanners at The Airport with $250.00 Bills' TSA Agents have enough curiosity when I have Bricks of $1.00 Bill's still shrinked wrapped ( $1000.00 Value )
In 1969, when the government stopped issuing all paper notes above $100, ten dollars had about the same purchasing power as $100 today. So in 1969 terms, our highest denomination paper money is only $10.
Therefore, I think it's time to bring back the $500 and $1000 notes. That would restore the highest denomination note to its value in 1969.
As for a $250 note, the denomination seems unwieldy to me. I doubt that it would be used much in everyday commerce. There is precedent in the 2 1/2 dollar gold piece, but that coin was much less popular than its $5 cousin.
Didn't the government recall all $500 & $1,000 notes in 1946?
"The U.S. stopped issuing $500 bills in 1969 due to a lack of public circulation and growing concerns that high-denomination notes were being used by organized crime networks to facilitate money laundering, tax evasion, and other illicit activities"
That's Google AI, so if you disagree, take it up with Google AI. No, "money laundering", isn't "curbing" the movement of ill-gotten gains-it is the movement, in a concealed way, of ill-gotten gains. "Curbing" it's movement would be "anti-money laundering". But, the semantics really aren't important. The point is we agree and do not disagree. A primary purpose of the removal of higher denominations was to make money laundering more difficult, wasn't it? At least this was true for the $500s and $1000s.
It was the $5000 and $10,000 that were redeemed and not issued after WW2. I think that overdate has it right with 1969 being the year that $500s and $1000 were officially "discontinued"
I agree with the comments that a $250 doesn't make much sense from a practical point of view and if we are going to start issuing $500s and $1000s again, that would make more sense.
@JBK- It doesn't take a law to stop issuing currency but it would take several to start issuing a $250 bill. This will take Congress and this is likely where it won't fly. The opposition seems to be bipartisan.
Current Polymarket odds put the chances of a Trump $250 bill by year-end at 10% currently.
About 35 years ago, long before the TSA was created, I was stopped and my carry on briefcase searched at DFW airport because the rolls of coins purchased at Heritage looked like gun barrels in the X-Ray.
I believe it was around that time that the government quit printing $500 and $1000 notes. They stopped issuing them to the public in 1969.
To whatever extent money launderers are now moving $100 bills, they will welcome the opportunity to move 2.5X that value with the same effort, or with only 40% of the expense. Probably with exactly the same risk of loss and success. Of course, it’s moot if they have trouble getting their hands on the $250 notes, which will probably be the case. Bottom line is that I don’t think a $250 note will move anyone’s needle very far.
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Personally I don't imagine that a $250 note would be issued for general circulation. If it is approved, I expect it to to sell as a commemorative issue from the government at far above the denomination value. While it could be be issued as legal tender(with approval)... much like a $50 gold eagle.... if you wanted to go to the extreme, they could make it a very limited print run to where none of them would ever get spent. Just my opinion.