Note 200 — Chapter XXII · CURRENCY, BANKING, AND CREDIT

The paper money is made at the Bureau of Engraving in Washington, not at the mints. Every working day in the year this Bureau turns out a million dollars or more in notes. A special kind of paper, made by a secret process, is used, and in the manufacture of this paper small strands of red silk are imbedded in the fabric. The notes are printed from mechanical copies of engraved plates, the originals of which are made by hand. It takes several expert engravers a whole year or more to make one of these originals, with its portrait, seal, symbols, and myriad of fine lines. All these precautions are taken to prevent counterfeiting. On its way through the presses the bills are counted and checked many times to make sure that none go astray or are pocketed by employees. So carefully is this done that only once in the last twenty years has a single bill been unaccounted for. When a paper note is permanently lost or destroyed after being issued Uncle Sam is very much the gainer, for it costs him, on the average, only about one cent to print a dollar bill. If the bill is only torn or partly destroyed, the government will redeem it. Full face value is given if at least three-fifths of the original bill is presented, or half the face value if two-fifths is handed in. If less than two-fifths of the bill is presented, it will not be redeemed except by proving the circumstances under which the rest of the bill was destroyed. When bills get dirty or worn the banks send them back to the Treasury. Some years ago the practice was to burn them in the furnace; but there was a rumor that charred pieces of the bills were in the habit of flying off through the chimney to be found by people who presented them for redemption. Now the worn money is put into a macerator or chewing machine, which masticates them to a pulp at the rate of about a million dollars a mouthful.