The 1934 US 100,000 dollar bill represents one of the most intriguing pieces in American numismatics. This rare banknote is a monetary monument and a reflection of a time when great economic uncertainty prevailed in the US, and it also represents the banknote with the highest nominal value ever issued in the US.
History of the banknote
The issuance of the $100,000 banknote was a response to the economic challenges that characterized the Great Depression. Between 1934 and 1935, this banknote served as a tool to facilitate fast and large transactions between the banks that made up the Federal Reserve System (the central bank).
This banknote was never intended for normal circulation between citizens and business entities, but was used exclusively by the US government and banks for mutual transactions, particularly those involving gold. The banknote itself belongs to the series of so-called “gold certificates” that were redeemable for gold.
The issuance of this banknote was initiated by then-President Franklin D. Roosevelt as part of a broader effort to stabilize the economy and curb the hoarding of gold, which was considered an obstacle to economic recovery during those crisis-ridden 1930s.
Basic characteristics and design of the banknote
The banknote is printed on paper measuring 157 x 66 mm. The predominant colors on the banknote are black, orange, and yellow.
On the front of the banknote, in its central part, is a portrait of the US President Thomas Woodrow Wilson. As part of the portrait, there is also a ribbon with the inscription „WILSON“.
To the left of the portrait is the seal (mark) of the U.S. Department of the Treasury printed in yellow. Overprinted on it is the text: „GOLD / THIS CERTIFICATE IS LEGAL TENDER / IN THE AMOUNT THEREOF IN PAYMENT OF ALL / DEBTS AND DUES PUBLIC AND PRIVATE. / CERTIFICATE“. Below that, a serial number is printed in yellow, consisting of one letter, eight digits, and another letter. Below the serial number is the inscription „Treasurer of the United States“ and the signature of Treasurer of the United States William A. Julian. Between the Treasury seal and the portrait is the inscription „SERIES OF / 1934“.
To the right of the portrait is a large denomination marking „100,000“. Above it is the serial number, and below, to the left, is the inscription „WASHINGTON D.C. / SERIES OF 1934“, while to the right is the inscription „Secretary of the Treasury“ and the signature of Secretary of the Treasury Henry Morgenthau Jr.
Surrounding everything is an ornamental border characteristic of other American banknotes. In each corner of the border is the denomination designation „100,000“. In the upper central part of the border is the inscription: „THIS IS TO CERTIFY THAT THERE IS ON DEPOSIT IN THE TREASURY OF“. In the lower central part of the border, below the portrait, is the inscription: „THE UNITED STATES OF AMERICA / ONE HUNDRED THOUSAND DOLLARS IN GOLD / PAYABLE TO BEARER ON DEMAND AS AUTHORIZED BY LAW“.
On the back of the banknote, in its central part, there is a large denomination marking „100,000“, and in the background is the dollar sign: „$“. Above the denomination is the inscription: „THE / UNITED STATES OF AMERICA“, and below is: „ONE HUNDRED THOUSAND / DOLLARS“. Around everything is a characteristic ornamental border, and in each corner of the border is the denomination marking „100,000“. The back of the banknote is dominated by the color orange.
It is interesting that the yellow color used to print the State Treasury seal and serial numbers contains a little bit of gold.
Banknote circulation
This banknote was printed in a quantity of approximately 42,000 pieces, but they never entered public circulation, circulating exclusively within the Federal Reserve system. It was legally forbidden for individuals or legal entities (outside the Federal Reserve system) to possess this banknote, and that regulation remains in effect today.
Most of the banknotes have been destroyed, and the only specimens that are in some way available to the public are those in museums and other educational institutions. For the aforementioned reasons, this banknote is not available on the collector's market. The only thing available is a banknote specimen (an unfinished proof), but that cannot be considered a real banknote.
Face value
The collector value of this banknote cannot be determined because it is not available on the market. Even if it were, it would involve the illegal possession of a banknote and it would be automatically confiscated by the US authorities.
No, the comparison of the banknote's face value itself is interesting. At the time of its issue in 1934, this banknote was worth $100,000, which was its face value. However, when taking into account the purchasing power of the dollar then and today, that banknote had a value equivalent to $2,246,000 today. In any case, it is an enormous amount.
Copies of “banknotes” on sale
On the numismatic market, especially on sales platforms like eBay and the like, copies of this “banknote” are sold, so some uninformed collectors think they are real banknotes. However, these are in any case copies and reproductions that are not real banknotes and therefore have no numismatic or collector value. The same thing goes for “gold-plated” (actually plastic) specimens modeled after the design of the original banknote. In any case, such “banknotes” represent a souvenir and are not part of numismatics.
Author: Zlatko Viščević
Photos: Wikipedia [en.wikipedia.org], Heritage Auctions [www.ha.com].
