Learn about the largest banknote in U.S. history and what it was used for – El Sol de Puebla

One of the most recognized banknotes is the buck, one of the most used coins in the world and that many like for its details. The American currency has a great history and many curious details, such as the time a banknote was used by $ 100,000as incredible as it may seem.

United States it is seen as an economic power and one that has solved each of its crises. But, one of them led to big risks and unexpected decisions from your government and your banks to the point that this note had to be created, although it was never really distributed.

HOW DID THE $ 100,000 BILL COME ABOUT?

One of the worst moments in the U.S. economy occurred in 1933, because of the global depression and mass deflation. At this time the gold grabbing and the practice of truque they reduced both the amount of funds that reached the government and the low or no amount of cash that was purchased.

Franklin D. Roosevelt, president of the country at the time, asked citizens to hand over to the government all gold that they had and agreed to bail out the banks. The measures were not enough and this brought problems such as currency control, so the president decided that the Treasury Department would take charge of the federal Reserve gold supply.

Already with all the gold under its control the government was able to manage its plans to devaluing the dollar and reinflate the economy, but the independence of the Federal Reserve would be lost. By January 1934 Congress approved the decision and promulgated the Gold Reserve Law from 1934 by establishing an exchange rate of 35 dollars for an ounce of gold as currency.

At the same time, the Treasury Department was responsible for print tickets to pay for gold to the Federal Reserve where the $ 100,000. Despite criticism of Roosevelt’s plan, his plan worked and prices as a purchase of cash were…