The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1891-01-08
PROFIT IN PAP Err MONEY.
UNCLE SAM HAS MADE MIL
LIONS BY 1T.
Various Ways In Which Paper Currency Is
Destroyed and Never Redeemed by the
Government Money Kept as
Curiosity, Also.

1t is most interesting fact that
nearly all the paper money destroyed
by accident meets it's fate on tho rail.
Whenever a railway disaster occurs
fire usually epsues, and the express
car is burned. Now, an express car
almost invariably carries safe with
more or less money in it, among other
valuables. The safe, unless it is one
for TRANSPORTING government money,
Is apt to be of the portable kind and
not fireproof. Thus it is an almost
everyday occurrence for one of these
safes to arrive at the treasury here,
says Washington letter, with
its cash contents in the shape of
more or less hopeless ashes.
''For example, take an accident that
occurred in Kentucky. Two trains
met in a tunnel, one Of them loaded
with passengers and the other a
freight, carrying coal and iron. For
thirty hours the wreck burned, and
such was the heat generated that the
iron was melted and flowed like water.
In the express car of the passenger
train was safe with $1,000 cash in it,
besides a lot of jewelry. It was all
paper money and was reduced to
ashes. Seven hundred dollars is all
that the redemption division has been
able to get out of it in condition for
purchase with fresh United States
notes. This, the authorities say, is
the worst ordeal through which an ex-
press safe has ever passed.
"You would be astonished to see
how little in the way of remains is re-
quired, when passed under the hands
OF the treasury experts, to procure the
Identification and redemption OF
burned paper money. A few bits, so
hopelessly charred as to seem to the
ordinary eye but a small accumula-
ton of ashes, may be redeemable for
thousands of dollars in bright new
bills at the paying teller's desk. All
that is required is sufficient evidence
that the originals of the notes have
beer really destroyed. Morsels no
bigger than your finger nail are every
day redeemed for the face value of
the bills they represent. AS to this it
is largely a matter of chance. If the
morsel wero merely corner, it would
not be likely to suffice for the identiti-
cation of the note. Supposing that
the case is that of a bank note, it is
absolutely essential that the bank
should be determined, else payment
cannot be made. But let the bit pre-
sented show the name of the bank, its
number, or even a portion of one OF
the officers signature. and it goes.
Until very recently portions of notes
sent in have been redeemed on the
discount principle-nine-te nths of a
ten-dollar bill bringing SO, and so on
but now the law is that the smaller
portion is redeemable at full face
value, if only it is accompanied by
satisfactory afidavits as to the loss of
the remainder. Some few attempts
have been made to swindle the treas
ury in this way by false afidavits, but
the department believes that it has al
ways discovered them.
Uncle Sam has made a good deal of
money by his paper cash that has been
accidentally destroyed. OF course,
every penny of it that is not handed
in at the treasury for redemption is so
much in his pocket. In this way he
has found his issue Of fractional cur
rency most profitable. These small
notes-for cents, 10 cents, rs cents
and 80 cents were easily destroyed.
especially during war times. The
first issue was made in 1868, and of
the 5-cent notes then put forth, nearly
one-half-more than As per cent, &C.
curately speaking-has never been
asked payment for. The same thing
is true OF 30 per cent of the 1O-cent
notes, 20 per cent OF the 25-cent notes.
and II per cent Of the 50-cent notes.
1t is shown by the figured treasury
total that of the $4,000, 600 worth OF
these notes first issued more than
$4,OOO,OOO still remains in the clothes
OF the government There were four
more subsequent issues of fractional
currency--some of their output in 8
and 10 cent notes-aggregating about
$447, 1000, 900, and of this lump sum
more than $11. 10000 has not been
called for. This leaves Uncle Sam
ION velvet to the extent of $15, OOO,-
900. 80 far as his fractional notes are
concerned. In other words, he seems
to have made about that amount O.,
money clear on the five issues.
Now. what has become of all this
small change? In 1870 a treasury
commission not appointed by law in
any proper form, made up it's mind
that So, 100000 had been lost or de-
stroyed, and congress accordingly
turned that amount out of the $40, OOO,-
600 originally appropriated for the re-
demption of the fractional notes over
for the payment of pensions. Since
then three exports in the department,