From Classical Values:
So why is it that we can’t obtain high-denomination notes if we want them? The highest value note is the $100.00 bill, but that was also the highest value note in 1969 when they decided to withdraw the higher-denomination notes, so I guess the government thought no one would need anything larger. But what about inflation since 1969? That hundred dollar bill would be $578.63 in today’s money. So why hasn’t the government at least re-introduced the $500.00 bill, just to keep up with inflation?
The answer seems to be the drug war.
Up until the mid-70s, and possibly later (I no longer recall the date), there were at least $500 and $1000 bills available to the public. They were withdrawn as part of the so-called “war on drugs”; the theory was that if large bills were unavailable, it would be more difficult to move large amounts of cash. In recent years, some people have suggested that since the change made no visible dent at all, the $100 and even the $50 should be withdrawn as well.
This same drug war would be the justification why you can’t move $10,000 of your own money around without a report to Uncle Sam. It’s all about information… and information is power. That little phrase on the bill — “for all debts, public and private” — probably needs to be amended, since very little is ‘private’ anymore.