The Curious Case of the Missing $3 Bill - 33rd Square (2024)

For over 200 years, the US dollar has been issued in denominations ranging from $1 up to $100,000. Yet oddly enough, the $3 bill is a denomination that has never existed. But how did this conspicuous gap occur in our currency system? And what is it about the $3 that made it the oddball left out of the sequence? Let‘s take a closer look at the fascinating history of the elusive $3 banknote.

A Tradition of Odd Denominations

Looking back through history, it may seem strange that a $3 bill was never issued. After all, many other small odd denominations like $2 and $50 bills have been printed over the years without issue. And the $3 was a useful denomination – some private banks printed $3 notes in the early 1800s.

In fact, odd denominations used to be more common in early American currency. This traces back to the origins of paper money. In colonial times, individual banks issued their own banknotes in a wide array of denominations based on the needs of local commerce. The denominations were not standardized across banks.

So the range could include small oddball amounts like $3, $7, $9 along with more familiar values like $20. This early system gave rise to the $3 banknotes printed sporadically by state-chartered banks up until the Civil War.

The Changing Fate of the $2 Bill

To understand what happened to the $3 bill, it helps to look at the history of another uncommon denomination – the $2 bill. First authorized in 1862, the $2 note was issued consistently for over 100 years as an important everyday denomination, even after larger denominations were introduced.

But by 1966, the $2 Federal Reserve Note was discontinued and recalled as it fell out of popular use. The growing prevalence of $1 bills made the $2 less necessary for commerce. For 10 years no $2 bills were printed at all. Then in 1976, the Treasury resumed a limited annual issuance of $2 notes as a cost-saving measure, but demand never returned to previous levels.

Today just 1.2% of US currency in circulation is in the form of $2 bills. Compared to the $1 bill which makes up 45% of all bills, the humble $2 is now scarce enough that some Americans think it‘s no longer being produced or that they must be highly collectible. Of course, neither is actually true – a perfectly ordinary modern $2 bill is still only worth $2!

The $3 Bill Gets Left On the Cutting Room Floor

Just as the $2 bill faded from prominence, the $3 banknote never gained much traction in the first place during the transition to our modern currency system. As paper money printing became centralized under the Federal Reserve in 1913, the denominations issued were streamlined and standardized.

The Fed chose to leave out the $3 bill entirely. And when larger size Federal Reserve Notes debuted in 1918, only the $1, $2, $5, $10, $20, $50, $100, $500 and $1000 were included in the new series. The $3 bill was conspicuous in its ongoing absence.

By 1925, all pre-Federal Reserve banknotes were withdrawn from circulation, marking the end of the $3 bill used by some banks. No $3 notes had been printed since the Civil War era. And with that, the $3 passed permanently into history. Clearly the Federal Reserve did not see enough utility or demand to warrant including tri-dollar bills in its plans. And no amount of inflation over the next 100 years changed their mind.

The Modern Denomination Lineup

Today the denominations issued by the Federal Reserve remain largely unchanged from a century ago with one major exception. While low value bills like the $1, $2, $5 and $10 remain, larger denominations above $100 are no longer printed for public use. The last big bills issued were $500, $1,000, $5,000 and $10,000 notes in 1945.

After decades out of circulation, these big bills were officially discontinued by a 1969 law. A $100 bill has been the largest denomination printed since. Here is the full rundown of US paper currency in production today:

As you can see, the $2 remains a relatively small part of the total currency supply today. And $50 bills are even more scarce, accounting for less than 0.01% of all US banknotes in 2022.

The $3 bill had its brief place in early American currencies. But it failed to gain a foothold in our modern denomination lineup standardized by the Federal Reserve a century ago. While the $2 bill still squeaked through, the $3 got left on the cutting room floor for good.

The Practical Origins of Odd Denominations

But was there a good rationale behind issuing some oddball small bills like $2 and $50 while excluding a $3? Or were these denominations just random historical accidents with no logic behind them?

In fact, there were practical reasons that drove the use of many denominations. As commerce expanded in the 1800s, the larger variety of notes helped address specific needs of a growing economy:

• Small bills ($1, $2, $3, $5) facilitated small purchases and made change easier when only coins were very low value.

• $10 bills were useful for modest purchases like meals, tickets, and cab rides.

• $20 bills covered weekly wages for many laborers and service workers.

• $50 and $100 bills allowed more efficient large payments and money storage compared to holding many small bills.

• Large bills ($500+) were mainly used between banks and the government due to their high value.

Viewed in this context, the $2 and $50 bills served useful niches despite their relative rarity today. The $3 bill was likely just a victim of consolidation when the Federal Reserve simplified denominations, leaving it redundant.

When 3‘s a Crowd – Other Discontinued Denominations

The $3 bill isn‘t the only paper currency denomination that has disappeared over time. Here are some other bygone bills that were once standard issues:

• $500 bill – Last printed in 1945, these notes were discontinued in 1969. Today, just a few hundred remain in private hands.

• $1,000 bill – Also discontinued in 1969, less than 200 of these bills are known to still exist making them highly collectible.

• $5,000 & $10,000 bills – These super large notes were mainly used between Federal Reserve banks. Neither denomination circulated among the public in large quantities.

The retirement of these big bills highlights how inflation inevitably makes extremely large denominations obsolete for public use. The $500 bill was worth over $4,000 today adjusted for inflation. So it‘s no surprise that public demand waned.

While no $3 bills were preserved, at least one can still admire the impressive historical $500, $1,000, $5,000 and $10,000 notes in museums and collections today. These rare high value bills reflect another interesting sidenote from the evolution of US currency.

The Allure of Rare Currency

For currency collectors, scarcity itself creates value. This drives the high prices paid for low print runs, old issuances, and unusual serial numbers regardless of the bill‘s face value. For example:

• 1928 $2 bills in mint condition can sell for $80 or more. That particular series had a relatively low print run of under 14 million notes.

• 1950 $20 Federal Reserve Notes in perfect uncirculated condition can fetch over $400 at auction due to their rarity.

• $2 bills with fancy serial numbers like solid 2‘s, ladders, or repeating digits can sell for hundreds up to thousands of dollars.

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• The famous 1933 $100,000 Gold Certificate, of which only a few were ever issued, has sold for as high as $7.6 million at auction! These are the star rarities that fuel currency collecting.

But condition is also paramount – heavy wear or damage can sink value dramatically. Crisp uncirculated bills in pristine condition always attract the highest prices.

The $3 bill had brief cameos early in US history. And while it never enjoyed the same longevity as the $2 bill, its lack of circulation adds to its own mystique for collectors. It‘s fun to imagine what an antique $3 note in good condition would be worth today!

The Fake $3 Bill in Pop Culture

Even though it was never an official issue, the concept of a $3 bill has permeated American culture as an idiom for nonsense or something too strange to be real.

This traces back to the general perception of odd denomination bills as unusual or hard to find. Saying something is "as common as a $3 bill" became a tongue-in-cheek way to call out a lie.

Various fake $3 notes and bills for absurd fictional denominations have been created over the years as novelties and jokes playing on the "too good to be true" notion. Printed on both sides with intricate designs, here are some comical mock currency I‘ve come across:

• A $3 bill with Richard Nixon wearing a halo, mocking him after the Watergate scandal

• A "$3.50" bill depicting the Loch Ness Monster a la tree fiddy meme

• A Thai Baht $3 note with Walt Disney on the front

• A "$420" marijuana-themed bill with cannabis symbols and Bob Marley

• A "$666" devil bill with pitchforks and pentagrams to poke fun at Satanic panic

• A "$1 million" bill with exaggerated security features and the Statue of Liberty

Of course, these gag bills are utterly worthless. But they humorously play into the idea of unbelievable currency denominations. The $3 fits right into this parody tradition as the famous denomination that never existed.

Does the $3 Bill Deserve a Second Chance?

Should the Federal Reserve reconsider the $3 bill? Or is its quirky nonexistence part of its charm?

A new $3 issuance seems unlikely at this point. The $2 denomination already covers similar low-value transactions. And coins have replaced most single digit paper bills in everyday purchases.

But a limited mintage $3 bill could offer some benefits:

• Improved accessibility – A $3 note would allow more efficient pooling of small coins for those relying on coin laundry, tolls, and vending.

• Reduced manufacturing – Coins have higher production costs than paper and require expensive metals.

• Novelty appeal – As with the $2 bill, its relative scarcity could make the $3 a conversation starter.

• Honoring history – Reviving the $3 as a special issue could acknowledge its role in early US currency.

While the $3 bill may seem redundant today, in my opinion its revival could be an interesting opportunity to celebrate the full span of dollars with historically inspired currency.

The $3 occupies a unique place in numismatics as the missing link that never found its way into circulation. And that makes the novelty of a real $3 all the more appealing! Whether the stalwart $3 bill deserves to join its peers someday remains an open question.

In closing, hopefully this overview scratched your curiosity about the vanished $3 banknote and its origins. Odd denominations reveal some fascinating history in how US dollars evolved. One thing‘s for sure – if the $3 bill makes a comeback after 200 years, it will be quite a collector‘s prize! Let me know if you have any other questions on our nation‘s currency. I‘m always thrilled to discuss little known monetary history and fun facts.

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