Why Did United States Banknotes Shrink In Size?

PCGS - Those who are aware of classic United States banknotes from the 1920s or earlier have certainly noticed today's folding money isn't as physically large in size as it once was. In fact, modern circulating United States Federal Reserve Notes are about 30% smaller than they were before 1929, when the nation's banknotes shrank in size from a standard 7.38 by 3.13 inches to the current 6.14 by 2.61 inches. These old large-size notes were often dubbed "Horse Blankets" or "Saddle Blankets," a wry nickname used by the public and remaining in the parlance of banknote collectors today to poke fun at the large size of these notes - seemingly big enough to envelop a four-legged land beast of the equine kind.


The Series 1923 $1 Silver Certificate was among the last of the large-size United States banknotes.

Large-size banknotes were issued from 1861 until they were replaced by small-size notes in 1929. But why the changeover?

As with so many transitions in the government's production of money, the switch from large-size banknotes to small-size came in an effort to save costs. Quite simply, during the 1920s the Bureau of Engraving and Printing began significantly increasing the number of notes it was printing each year, and the many tons of paper required to print these notes were of a special quality that was becoming expensive to make. Cost analyses revealed that millions of dollars could be saved by reducing the physical dimensions of banknotes.

Read the Entire Article