While reading an article in a recent IBNS (International Bank Note Society) Journal I came across a very interesting website for calculating the purchasing power of money in bygone years relative to subsequent years. Algorithms exist for US Dollars and Sterling Pounds amongst others:
http://eh.nethttp://www.measuringworth.com/ppowerusI performed a few sample computations using the latter website and the results are quite elucidating as far as the collecting of high-denomination banknotes are concerned, for example:
A $500 banknote in 1911 had the same purchasing power as $11,600 in 2009.
A $500 banknote in 1925 had the same purchasing power as $6,120 in 2009.
A $25 banknote in 1935 had the same purchasing power as $391 in 2009.
Although the website generator is for US Dollars one can surmise that the purchasing power of a Bank of Canada $25 1935 note at the time of issue was roughly equivalent to $400 today. This might help to explain the scarcity of earlier high-denomination notes in general.
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" Buy the very best notes that you can afford and keep them for at least 10 years. " (Richard D. Lockwood, private communication, 1978).
