The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-09-02
Ell MAKING OF MONEY
HOW UNCLE sAM ISSUES AND CAN
GELS HIS CURRENCY NOTES.
over 5000, 0Uv, geo of ms Paper Always
Outstanding - Its Manufacture,
Checks and Safeguards.
New York Sun.

urers. here in New York for years, and a
Sun reporter asked him the other day for
an interview as to all the wrinkles as to
how money is made, how much has been
issued in a given time, and all OF the de-
tails Of the money-making machine OF the
United States government. Mr.. Muhleman
replied:
Il observe an article going the rounds OF
the papers relative to the issue and re-
demption of Bank of England notes, Tn
number of notes Cancelled daily is given at
$1,000, and it is regarded as quite a large
figure. But Uncle Sam. in the manage
ment Of his paper money, cancels a good
many more notes daily. 1t is quite prob
able that the number of notes destroyed
daily has reached 10000. since the average
during 1898 was over 10000, estimating 800
working days 10 the year. Our Office here
in New York alone has sent TO Washington
as high as 10000 notes in one day. VI
course, these notes are replaced by a like
number or larger number, and SO the issue
department handles an equal volume OF
notes.
During the fiscal year 1894 the number
Of notes Of all kinds issued amounted to
over SO .0O0,000 of an aggregate val'!e of
$441, 100000. To accomplish this tremendous
issue of paper and it's redemption when it
has done its work among the people re-
QulAG lie ldOOI VI lllcllly ndiiQ dAQ III -
efclse OF great care: First the paper, IKE
that OF the Bank of England note, is or a
special kind, and made only for the govern
ment at the mills of Crane & Co., Pittsfield,
Mass. Only clean linen rags are used, and
the distinctive fibre is put in as it is made.
For awhile this fibre was not used, but II
was found advisable 10 nave ii restored.
Il government representative is stationed
ct the mill, and sees that no paper of this
kind is made except for the United States;
to do this he has, of course. full super
vision. The paper is turned out in sheets
nf a nfUn = uaaraff Tho nrfnffnU M four
notes on each. About i4sOOS'Ooo Sheets were,
therefore. required i'm the past fiscal year.
These are forwarded after count from the
mill to the Treasury Department, where
they are counted and from time to time
delivered TO the Bureau OF Engraving and
Printing, where the notes are printed from
plates kept in the vaults.
The Treasurer OF the United States es-
nations and amounts of notes he needs.
and the Controller OF the Currency does
the same for the notes of national banks.
who receipt for the number OF sheets and
the plates they are to use.
to be treated somewhat as if it were act
ually money. The printing press contains
an automatic numerical register recording
the number of notes printed. A strict
count is kept as the sheets pass through
printing. drying. face printing. pressing.
numbering and delivery to the .Treasurer's
office, where, finally the seal OF the treas
ury is placed upon the notes. and the four
notes are separated, arranged numerically,
and put up in packets OF 100 notes, these
In bundles OF LOCO, and shipping packages
of 1000 notes.
A RECORD KEPT.
"a general record by the numbers of the
notes is kept, showing to which treasury
,fice or bank they are first issued; but no
record Of redemptions by numbers is kept,
excepting in the case of redemption Of frag-
nents.
THE Bureau of Engraving and Printing
- oAzr% 4 90 DADDIo Hu% n 1aroo
part of this force is employed on the work
Of printing internal revenue stamps. 1t is
estimated that the cost of printing notes
and stamps is S25 per 1000 sheets. say 25
Considerably above this. as stamps are
printed on only one side. Probably notes
cost from 4 to ) cents a sheet or about l
""The national bank notes are delivered to
the Controller of the Currency, who turns
them over to the banks for signature by
the officers and issue. The government
notes, when shipped to a subtreasury, are
paid out in exchange for larger ones or
for government payments; and. when they
have become defaced or torn they generally
find their way into banks, from which the
great bulk of old notes are received for
"As might be inferred, the handling Of
such a large volume of money is circum-
scribed by, a great many checks and safe
packed and placed in a large vault and
held in reserve each kind and
ton being stored tore separately and packages
RAORCAAS OhN
to the numbers of the notes. 1t is desira-
bic that the notes be seasoned six or
oughly. Well-seasoned notes last longer
under the same amount of wear and tear
than those issued at once. OF. course, an
accurate record is continually kept of the
stock on hand. The daily deliveries by
sSe P issas are Bg sTperv fnd t bs W fhe oficers
representing the several offices interested.
The Register of the Treasury. whose name
appears on the notes, is as much interested
as is the Treasurer to see that not more
than the proper number of notes is issued
and the Secretary of the Treasury is equal
Iy interested to see that the laws limiting
the issues are properly observed.
ITO illustrate this especially, the law
provides that there shall be no more than
$3i6.6 S1, 016 of United States notes Cor green
backs outstanding, SO that the officers are
amount which is Cancelled and destroyed
each day; Therefore the same officers must
daily. When the Treasurer's force of count
ers has concluded the count and assort-
ment of a days receipts of notes, these are
cut in half Observation-Disclosures cancella-
tiOn-one-half going to the office of the
Register, where the notes are recounted,
then a proper certificate is made out by
representatives of the several offices, and
destruction follows and is again certified
to. Notes are now destroyed by being
macerated. or ground into pulp with GER
tain chemicals.
Unlike the notes of the Bank of En-
gland. our notes which come back to the
treasury in a condition fit for further use
are again issued. Thus it is estimated that
the average life of notes is about three
years. The ones and twos have shorter.
but the hundreds, five hundreds, and one
thousands much longer lives
1.-THE government issues at present three
kinds of paper money: United States notes.
or greenbacks; silver certificates, repre-
senting silver dollars on deposit. and
treasury notes. authorized by the law of
1890. No new issues are really made now
only reissues: substituting new for old
notes, and small for large denominations
or vice versa. Gold certificates were is
sued up 20 April 10, 1895; since that date.
under the law OF July IL, 1852, none are
ISSUED, nor reissued, the gold reserve hav-
ing fallen below one hundred millions. at
which point the limit under the law was
reached These gold certificates represent
gold actually on deposit and payable on
demand. There are now about $66, 900, 900
of these outstanding.
LIMIT OF ISSUE.
"The limit Of issue OF United States
notes. as before stated. is 1916 S1. Ol6: of
silver certificates no more can be issued
than there are dollars held in or brought
TO the treasury; on June 30, 1894. there
were outstanding $557, 1iS,5Oi, and the treas
ury notes were on that date limited TO not
more than SIP. 5S4. At. We have thus a to-
tai government paper circulation, including
the sold certificates, OF over 500. COO. 600;
besides these tie national bank notes is
sued by banks under direction OF the
Controller of the Currency and secured
by government bonds. which now amount
to about S201.000,0 600, serve TO SUNNY fhe