You probably haven’t seen one. Most people haven't. If you stumbled upon a $500 bill today, you might actually think it’s play money or a clever forgery. But it’s very real. It’s legal tender. And no, it’s not Benjamin Franklin staring back at you from that particular piece of paper.
So, who was on the 500 dollar bill?
The face belongs to William McKinley. He was the 25th President of the United States. He’s the guy who led the country through the Spanish-American War and was eventually assassinated in 1901. While he doesn't get the same "Mount Rushmore" level of fame as Lincoln or Washington, the Treasury Department decided he was the perfect fit for the high-denomination note back in the early 20th century.
It's a weird piece of history.
The Man on the Bill: Why William McKinley?
McKinley wasn’t always the face of the $500. Before the 1928 series—which is the version most collectors hunt for today—the government experimented with other figures. You might find "Rainbow Notes" from the 1860s featuring Albert Gallatin, who was the longest-serving Secretary of the Treasury. There were even versions with John Marshall, the famous Chief Justice.
But when the Bureau of Engraving and Printing decided to standardize the size and look of American currency in 1928, McKinley became the permanent resident of the $500 note.
Why him? Honestly, it was partly a matter of timing and prestige. McKinley was a "gold standard" guy. He championed sound money and industrial growth. To the bankers and high-rollers of the 1920s, his face represented stability. It signaled that this piece of paper, which was worth a literal fortune at the time, was as good as gold.
Think about the math for a second. In 1928, $500 was roughly equivalent to $8,000 or $9,000 in today’s purchasing power. You weren’t using this to buy a loaf of bread or a pair of shoes. This was for inter-bank transfers. It was for buying real estate. It was the currency of the elite.
Is the $500 Bill Still Legal Tender?
Yes. Technically.
If you walked into a grocery store today and tried to pay for your $400 haul with a McKinley $500 bill, the cashier would likely have a heart attack. They would almost certainly call the manager. The manager would probably call the police.
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But here’s the kicker: the federal government still recognizes these notes as legal tender. According to the U.S. Department of the Treasury, all Federal Reserve notes ever issued remain redeemable at their face value.
But you would be a fool to spend it at face value.
Because these bills were officially discontinued in 1969—along with the $1,000, $5,000, and $10,000 notes—they have become incredibly rare. A $500 bill in decent condition can easily fetch $1,500 to $4,000 on the collector's market. If it’s in "uncirculated" condition? You’re looking at even more.
Why did they stop making them?
The Fed stopped printing them in 1945, though they stayed in circulation for decades after. The official death blow came on July 14, 1969.
The reason? Crime. Well, mostly crime.
As electronic banking began to take root, the need for massive physical denominations plummeted. Meanwhile, the Department of Justice realized that high-value bills were a gift to money launderers and tax evaders. It is much easier to smuggle a million dollars across a border if you only need 2,000 bills instead of 10,000.
By killing the $500 bill, the government essentially made it harder to move large sums of "dirty" cash.
Spotting a Real McKinley: What to Look For
If you’re ever lucky enough to hold one, you need to know what you’re looking at. The $500 Federal Reserve Note from the 1928 or 1934 series has a very distinct look.
First, there’s the portrait. McKinley looks stern. He’s clean-shaven, balding on top, with heavy eyebrows. He looks exactly like a man who spent his life thinking about tariffs and gold reserves.
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The back of the bill is surprisingly simple. It doesn’t have a fancy building like the White House or the Treasury. It just says "The United States of America" and "Five Hundred Dollars" in ornate, swirling calligraphy.
- The Seal: Look for the Federal Reserve seal on the left.
- The Serial Numbers: On the 1928 series, these are usually numerical.
- The Color: It’s that classic "banknote green," but the paper often has a slightly different texture than modern "plastic-feeling" bills because of the high linen content used back then.
Interestingly, there were different "types" of $500 bills. You have Federal Reserve Notes (the most common), but there were also Gold Certificates. Those had bright orange backs. If you find an orange-back McKinley, you’ve basically hit the numismatic lottery.
The Myth of the $500 Bill in Daily Life
We often imagine the Roaring Twenties as a time when everyone was throwing around large bills at Gatsby-style parties. That’s mostly fiction.
For the average worker in 1930, the $500 bill was a myth. Most people earned maybe $1,500 a year. Carrying a McKinley in your pocket would be like carrying four months of salary in a single slip of paper. It just didn't happen for the working class.
These were "banker bills."
They lived in vaults. They moved between the Federal Reserve and commercial banks to settle debts. When a bank needed to move a large amount of cash to another branch, it was far more efficient to pack a stack of $500s and $1,000s than a mountain of $20s.
Why the $500 Bill Won’t Come Back
Every few years, someone starts a petition or writes an op-ed suggesting we bring back the $500 bill. The argument is usually about inflation. Since the $100 bill doesn't buy nearly what it did in 1969, wouldn't it make sense to have a higher denomination?
Economists like Larry Summers have argued the exact opposite.
In fact, there’s a strong movement to get rid of the $100 bill entirely. The logic remains the same as it was in the '60s: high-value cash is the lifeblood of organized crime, drug trafficking, and corruption. In a world where you can Venmo someone $5,000 in three seconds, the legitimate need for a physical $500 bill is basically zero.
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Plus, there's the "seigniorage" issue. That's a fancy word for the profit the government makes by printing money. But more importantly, the government wants a digital trail. Digital transactions are taxable and traceable. A $500 bill is a ghost.
What to Do If You Inherit a $500 Bill
Let’s say you’re cleaning out your grandfather’s old desk and you find a crisp McKinley.
Do not go to the bank. I mean, you can. The bank will take it. They will give you five $100 bills for it. Then, they will send that $500 bill to the Federal Reserve to be shredded. You will have just "lost" thousands of dollars in collector value.
Instead, follow these steps:
- Don't clean it. Never, ever try to "wash" or iron an old bill. Collectors want the original patina. Cleaning it can drop the value by 50% instantly.
- Get a plastic sleeve. Go to a hobby shop and buy a PVC-free currency holder. This protects it from the oils on your skin.
- Check the series date. Look for the year. 1928 and 1934 are the big ones. 1928 is generally more valuable than 1934.
- Look at the "Star." If there is a star at the end of the serial number, it’s a replacement note. Those are significantly rarer and worth a huge premium.
- Consult a professional. Look for a member of the Professional Currency Dealers Association (PCDA). They can give you an honest appraisal.
It's tempting to think of money as just something to spend. But the $500 bill is more than that. It’s a relic of a time when the U.S. was transitioning from a regional power to a global financial titan.
The Cultural Legacy of McKinley's Currency
It's funny how we've kept the $1, $2, $5, $10, $20, $50, and $100. It feels like a complete set. But the hole left by the $500 bill is felt in the "what if" of American history.
William McKinley himself is a bit of a tragic figure. He was a popular president, a Civil War veteran, and a man who genuinely cared about the American economy. Putting him on the $500 bill was a way of honoring his "Sound Money" legacy.
Today, he lives on mostly in the pockets of wealthy collectors and in the "fun facts" section of history books. He is the ghost in the machine of the American financial system.
If you're interested in the history of money, the $500 bill is the ultimate rabbit hole. It represents the intersection of crime, banking, art, and politics. It’s a reminder that what we use to pay for things is always changing, and what’s "standard" today—like the $100 bill—might one day be a rare artifact that your grandkids find in a drawer and wonder, "Who was this guy?"
Actionable Next Steps for Collectors and Curious Minds:
- Check Heritage Auctions: Browse their "Small Size High Denomination" category to see what McKinley bills are currently selling for. It will give you a real-world sense of the market.
- Visit the Smithsonian: If you're in D.C., the National Numismatic Collection has some of the rarest $500 specimens in existence, including those early Gallatin and Marshall notes.
- Verify Your Local Dealer: Use the American Numismatic Association (ANA) website to find a reputable dealer near you if you’re looking to buy or sell. Avoid "We Buy Gold" shops; they rarely understand the nuances of paper currency.
- Study the Serial Numbers: If you already own one, look up the "Plate Position" and "District" to see if your specific bill has a rare pedigree. Some districts (like Minneapolis or Kansas City) printed far fewer $500 bills than New York or Chicago, making them much more valuable.