Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-05-31

NOTES ARE SORTED AND COUNTED-MISTAKES
MADE BY NATIONAL BANKs-THE DESTRUCTION
OF THE REDEEMED NOTEs-wHY THE FURNACE
PLAN WAS ABANDONED, &C.
One of the most complete Of the government
workshops is the national bank redemption
division of the Treasury department. The work
done there, while of complicated nature. and
requiring great accuracy is 80 systematized that
it runs without hitch Even If mistake
should occur in handling and counting the vast
sums Of money which constantly pass through
the bureau, the system of checking and re-
ceipting is so perfected that it would be discov-
cred in very short time, and its origin traced
almost simultaneously. The fifty-seven en-
ployes of the bureau, mostly ladies, who are
locked in a long room on the west side of the
building, are the ones who count and sort the
old worn out bank notes, which are sent to the
department for redemption. Each counter has
separate table with compartments for differ
ent notes The casual visitor to the department
gets partial glimpse of the ladies behind the
wire screens. rapidly lingering the soiled and
torn money which has Just been withdrawn from
general circulation, but. for precautionary rea-
sons, visitors are seldom admitted to the inte-
rior.
TEN YEARS WORK. .'''
The bureau will have been in existence just
ten years on the first of July, and the work &C.
complished by it is invaluable Since its origin
there has been redeemed 81. 391, 494, 0Oz15, or
over twice the national bank circulation.
What is the average lite of bank note?"
asked STAR reporter of one OF the officials.
about five years." was the reply. "Of
course, he added, I'VE have no other way of
finding out than by comparing the amount an
nually redeemed with that in circulation. about
20 per cent of the whole circulation being re-
deemed every five years. The life of the legal
tender notes. being of smaller denomination, is
only about three years"
The amount OF money redeemed from year to
year varies from sixty million dollars to two
hundred and forty million dollars. This would
be an average of one hundred and fifty million.
but the clerical force can't be averaged in that
way. When the redemption is over a hundred
million the work is really more than ought to be
done with the present force. There is a promise
OF an additional force before great while.
HOW THE MONEY Is SORTED.
A STAR reporter was escorted through the
division the other day by the superintendent,
Mr.. Rodgers, and the modus operand was kindly
explained. Money sent here to be redeemed
goes through three separate processes" said
that officer. Packages are received from banks,
and just in the shape they come are taken
by counters. who give their receipts for them,
to their tables and are there sorted by denOmi-
nations. These packages containing bills &C
cordlng to denomination are turned in at
night. and the next day the counters divide the
bills into groups. We have fifty-tw0 of these
groups, which include all the national banks,
arranged alphabetically by towns in which they
are located. New York has group of its own,
and so has Boston, on account of the large num-
Der OF banks located in those cities. The group
packages are deposited in the vault to be grad
ually withdrawn and the bills separated accord
ing to the banks of issue This constitutes the
third and last process. Bank notes which are
ut are returned to the banks of issue and a
check generally on a sub-treasury sent for
those which are not fit. While the first two
processes are daily the third is of course not.
The groups are taken from the vault in order
and the whole fifty-tWo are generally gone
through with about twelve times year When
the redemption is under hundred million dol
lars In q year about Seyenty-tiyc per cent OF the
notes received here have to be destroyed, avery
small portion proving fit to be used again.
When. however. the redemption is much over
that the proportion OF fit notes is much larger"
Il see the Ladies are allowed to have COM
Portable seats while at work: has that always
been the case?" asked The STAR reporter.
mo; several years ago they were compelled
to stand Mt these large cases and perform their
work But the constant strain from standing.
and from the use OF the muscles of the shoulder
i'll handling the money, was very injurious.
The systematiZing of the work. however, per-
mitted changes in the manner of performing it.
After five years of steady work in the Old way
woman would be almost entirely used up"
COVERS" AND SHORTS
This book" continued Mr. Rodgers, turnns
to rather small account book, ..shows the
workings of this division since its organization
to the present day, giving the result Of each
days proceedings. 1t is balanced daily, and
from an inspection of it the workings of the
division can be seen at glance If q bank
sends more money than Is marked on package,
or not as much as marked. 1t is noted here On
May the 9th yon will see that there was a short
age of $500. That is rather peculiar for the
package Of money came from the National Me-
tropolitan bank OF New York, just day or so
before it suspended. The officers of the bank
must have received the letter from the depart
ment noting the mistake on the very morning
of suspension, but guess they were too busy
with more important matters to pay any atten-
ton to it. That was the fourth time that there
were large shortages In the packages from that
bank in the past ten years. but every time be-
fore the bank would not own the mistake, but in
sisted that the trouble was in this office VERY
often banks send more money than they mark
on the packages. In fact. the overs have ex-
ceeded the shorts amounting to $l7O. 800 and
the shorts to S135 800 liz the same ten years
Sal 800 in counterfeit notes has been discovered"
lis it possible for an employe to extract
note anu take IL MONIES! asked HE STAR man.
Yes. it is possible, but not at all probable
If 1t should be done a mistake would be discOv-
cred by means Of the checks and receipts and
the point Of disagreement would be soon To-
Gated. OF course if clerks were inclined to
steal they would be apt to take from an over
package. but a mistake of that character is
often discovered at home and reported here be-
fore We can inform the bank. We can point to
the fact of the overs exceeding the shorts
as general proof of the honesty of the bureau"
DESTROYING THE REDEEMED NOTES.
OF course everybody knows what becomes of
the redeemed notes. The bank notes are mace
rated in the basement Of the Treasury, in the
presence Of committee. The United States
notes are similarly disposed of at the bureau of
engraving and printing. The pulp which re-
mains ia often made into ornaments Of different
designs and sold by private parties to curiosity
seekers. The tact that each ornament contains
the remains of thousands Of dollars Is it's main
attraction. The pulp is sometimes made into
paper. but only the cOarsest kind can be made.
In fact not so good even as formerly when the
notes were printed upon better material than
now. When the national bank REDEMPTION
agency was first established the macerating pro-
cess was in vogue in the Treasury department,
subsequently 1t was abandoned and large fur
mace used for burning the notes.
WHY THE FURNACE WAS ABANDONED.
This did not work satisfactorily, as the unus-
ual draft necessary to burn the notes would often
carry through the chimney notes only par
TALLY burned. 1tfrequently happened that these
were picked up in the neighborhood and pre-