Bank Notes

Early banking in the United States was largely decentralized. Although there were several attempts at a central bank, notably by Alexander Hamilton in 1791, none of them persisted for more than 20 years. The first centralized banknotes were printed in 1914. From 1914 to 1928, United States banknotes were much larger than they are today. They were only slimmed down to their modern profile in 1928 when the Federal Reserve had to lessen operating costs.

The modern $1 note debuted in 1963, although it had existed sporadically prior as a silver certificate. The $2 note existed as a large note prior to 1928's redesign and survived until 1966, at which point it was discontinued temporarily. The $2 note was revived in 1976 and continues to be printed today despite its rare usage.

Since 2003, the Federal Reserve has been slowly revising the various denominations of banknotes. Newer notes have increased amounts of color, as well as a sleeker, more modern look and increased security against counterfeiting. The $1 and $2 notes have yet to be redesigned.

Quick Facts

• The $1 note's continued survival is still debated today. Many politicians wish to see the note replaced with a $1 coin, as it would save a lot of money due to the low durability and high use of the $1 in particular
• Although many people are unaware of the $2 note's existence, it has been turning up more as a convenient and unique tip in recent years
• In 2014, an 1890 $1,000 note known as the Grand Watermelon sold at auction for $3,290,000