The Allure of $2 Bills

Unique among all the U.S. paper currency, $2 bills carry an aura of allure and mysteriousness. They aren’t seen nearly as often as other currency denominations. Indeed, only 3% of bills in circulation are the $2 variety¹. Many people believe them to be out of print and discontinued and wonder if they might be valuable. (Nope, they’re still only worth $2 apiece). Grandmothers famously place them in Christmas cards for their grandchildren. Because of the rarity and perhaps also because of the grandma connection, people will often save their $2 bills, tucking them away in a shoebox or something in the back of a closet. Of course, removing them from circulation in this way only increases their rarity.

I also tucked a $2 bill away for many years, storing it in a folder in a drawer. I noticed it every few years when I searched for various things in that drawer, forgetting about it the rest of time. Finally, I wondered why I was saving it. Two dollars will hardly save a rainy day, after all. I couldn’t remember how I had obtained the bill, so I had no sentimental attachment to it. I knew I wouldn’t have trouble finding a new one if I wanted. So, I decided to stop hiding it in a drawer. Not only would I spend it, I decided to get and spend many more of them. More on that in a moment.

The $2 bill has a long history. It’s been around since 1862, when Congress enacted the Second Legal Tender Act. In 1928, when the size of U.S. currency was reduced to its current size, a new $2 bill was designed, featuring Thomas Jefferson on the front² and Monticello, his home, on the back. They enjoyed common usage but developed a bit of a shady reputation for their use in gambling, strip clubs, and bribery. This tarnished reputation may have lowered demand for the bills, and production decreased in the 1950s. As a result of increasing scarcity, some people started to save any bills they received, accelerating the increasing scarcity.

Production of the $2 bills stopped in the late 1960s. Officially, they were discontinued by the U.S. Treasury. However, the Federal Reserve began issuing them again in 1976. Since that time, the Federal Reserve has continued to print them, but only on demand. Since the demand is low, new printings might not occur for several years. Thus, the time when they were officially discontinued (though not removed from circulation) doesn’t seem that different from the current situation.

The 1976 issue included a new design on the back side. A depiction of John Trumbull’s painting, Declaration of Independence, now appears on the back of the bill. This patriotic image, along with the 1976 reissuance, led many to believe that the new bill was a limited-time offering in celebration of the nation’s bicentennial. That belief has contributed to the allure of the bill, as well as encouraging people to hold on to them.

I love how people react to getting a $2 bill. Many people exclaim and call others over to take a look. Some people laugh. Some express skepticism, although I don’t encounter that reaction much. I hear stories about it and keep hoping somebody will doubt the legitimacy of my currency.

Anticipating these types of reactions, I decided to spend a bunch of $2 bills back when I was in high school. I travelled with my high school band to New York City, Philadelphia, and Washington, D.C. In anticipation of this trip, I gathered my spending money and went to the bank to exchange it for $2 bills. I didn’t stop there, though. I then took them to a print shop and had them gummed together like a notepad. When I needed to buy something, I simply peeled off the necessary number of bills. (Why? Just because. That’s the way I am. I did it for my own amusement). I hoped this would enhance a natural distrust of the bills and raise a few eyebrows. Sadly, it didn’t. Especially in New York City, I hardly got any reaction at all. Still, I had done it for my own amusement and that was enough.

So, let’s get back to more recent times. I said that I had decided after many years of hiding my $2 bills away that I should start spending more of them. I went to the bank and got several stacks of bills. For a while, I had found a bank that usually had a bunch in stock. Now, I have a bank that orders them for me. If you want to find some, your bank might order them for you. Or try around Christmastime. Many banks order them ahead of the Christmas season in anticipation of all the grandmothers trying get them for their grandchildren’s Christmas cards.

I don’t usually buy things with cash anymore, so I primarily use $2 bills for tipping at restaurants. (Since I eat at a lot of restaurants, I go through a lot of $2 bills). I usually don’t say anything; I just leave the bills on the table or with my credit card slip. Sometimes as I slip out, I can spy a surprised waiter or waitress discovering them.

Once, my wife and I went to a restaurant that we visited frequently. On this particular visit, we got a waitress we hadn’t seen before. She was friendly and professional, but nothing really stood out about our visit. Not until the end of our dinner, anyway. As I always did, I signed the credit card receipt and left the tip in $2 bills with it. The waitress saw me do this and rushed over to us as we stood to leave. “You’re them!” she exclaimed. Them? Apparently, the waitstaff had all talked about the customers who always left $2 bills for tips.

I love seeing that kind of excitement. Besides spending $2 bills for my own amusement, I do it for moments like that. We encountered another moment of glee when we took a Caribbean cruise. During the cruise, we took a land excursion to some island waterfall and pool. Entrance required a small fee, which I paid in $2 bills. The Caribbean woman took my money and immediately started laughing. She didn’t say a word, nor did she look at us again. She just kept looking at the $2 bills in her hand, laughing endlessly. We weren’t sure what to do, so we simply entered the park, listening to her laughing as we walked down the trail.

So, I guess my mission is to spread joy, $2 at a time.